Gold prices surged to $2500/oz as investors brace themselves for Fed Chair Powell’s speech at the Jackson Hole Symposium. The market saw a rebound in the European session, driven by a combination of factors including a stronger US Dollar, rising US Yields, and potential profit-taking.
With the upcoming speech from Powell, many are speculating on what impact it will have. The market has already priced in the likelihood of rate cuts in September, following a downward revision to US jobs data. This raises the question of whether Powell’s remarks will bring any surprises or significant changes in market sentiment.
From a technical standpoint, the recent rebound in gold suggests bullish momentum in the market. The precious metal has climbed above the $2500/oz mark, with resistance levels at 2514 and 2531.66 in the US session. On the downside, support levels are at 2484 and 2472, with a potential retest of the key area at 2450.
Ahead of Powell’s speech, the market is filled with anticipation and uncertainty. While some expect clarification on September rate cuts, others are cautious about potential surprises. The recent bearish engulfing candle in gold found support at 2472, signaling a possible bounce back in prices.
Market participants have been closely monitoring Fed policymakers’ stance on rate cuts, with many already confirming their support for reductions in September. However, despite this support, gold struggled in the US session, indicating that rate cuts may already be largely priced in.
The market is eagerly awaiting Powell’s speech at the Jackson Hole Symposium, with hopes of gaining insight into the future direction of interest rates and its impact on gold prices. While technical analysis suggests bullish momentum, market speculation and uncertainty continue to drive volatility in the market. As investors await Powell’s remarks, the fate of gold prices hangs in the balance.