GOLD PRICE VIEWS:
- Gold prices fixed in place as US dollar, bond yields conflict
- All eyes on next week’s Jackson Hole Symposium
- Dallas Federation President Kaplan’s title lean Friday
Gold prices this week at a standstill, even as markets saw the withdrawal of Fed stimulus seemingly imminent at the beginning of pricing. Minutes from July FOMC The meeting hinted that restrictions on the purchase of QE assets could begin this year, with punctuation months of carefully worded adjustments to the policy guidelines officials.
This led to a sharp rise in the US dollar, which was expected to lead to the flooding of bullion. However, it also worsened the wider mood, pushing capital flows out of riskier assets and towards government bond security. It anchored the yield, providing a deferral to the interest-free yellow metal.
Ccharter created using TradingView
Looking to the future, the bare-bone data set doesn’t seem to encourage direction, as all eyes will be on next week’s Jackson Hole symposium. The annual conclave is often a forum for revealing significant changes in the thinking of Federation officials, leading to subsequent political changes.
This may leave gold prices in currently familiar ranges. The speech of the President of the Dallas Federation, Robert Kaplan, is correct, but his relatively convex attitudes are well known to traders. To this end, familiar rhetoric may not move the market.
GOLD TECHNICAL ANALYSIS – SWITCHED CONDITIONS UNDER 1800. NOW WHAT?
Gold prices have stalled as they have risen again to re-test the familiar deadlock centered around the 1800 / oz figure. The resulting retraction sees initial support in zone 1755-65, characterized by another long-term bend region and 38.2% Fibonacci expansion.
With daily closing, confirming the lower breaking puts the focus on 50% Fib 1717.42, followed by the 2021 base in the 1670-80 region. The 61.8% expansion serves as a reinforcement here. Alternatively, insuring the infringement over resistance could test sector 1830-40.
The gold price chart is created using TradingView
GOLD TRADE RESOURCES
– Written by Ilja Spivak, Chief Strategist of APAC of DailyFX
Use the or comments section below to contact Ilja @IlyaSpivak Twitter