GOLD PRICE VIEWS:
- Gold and silver prices constantly stood in front of the Jackson Hole Symposium
- Investors look for clues to Federal Reserve’s narrowing timeline in Jerome Powell’s speech on Friday
- The world’s largest gold ETF has seen a faster outflow in recent weeks, highlighting the downward trend
Gold prices rose lower during Wednesday APAC session, testing the immediate support level at $ 1,785. Precious metals traders are watching Jackson Hole Symposiumtips on Fedi’s tapering timeline. Head of the Fed Jerome Powell will speak at the Fed’s annual economic symposium on Friday. Global investors are closely monitoring whether the central bank plans to reduce its $ 120 billion asset purchase by the end of this year. However, the market does not seem to be too worried about this, because DXY US dollar index fell 4 days a rida.
The world’s largest gold ETF – SPDR Gold Trust (GLD) – in August, there was a net outflow for three consecutive weeks. This suggests that more sellers will return to the bullion market as the Fed approaches to reduce asset purchases. The number of GLD shares issued decreased by 4.6 million last week, falling by 2.9 and 1.4 million in the previous two weeks, respectively. The price of gold and the number of GLD shares outstanding have had a strong positive correlation in the past (chart below). Therefore, the accelerated pace of redemption of ETFs can be considered as a fall in prices.
Prominent Gold Prices vs. GLD ETF Shares – The past 12 months
Source: Bloomberg, DailyFX
Looking to the future,. GfK consumer confidence data dominate alongside economic activity US GDP and the initial once a week unemployed claims. You can find more information on the websiteDailyFX economic calendar.
Technically, gold prices the key support was restored to $ 1,785 – 61.8% Fibonacci retracement. Keeping it above that level could open the door to additional upside potential if you look at $ 1,810. However, the failure could increase sales pressure in the near future and reveal $ 1,750 in support. MACD indicator formed bullish crossover and headed higherwhich suggests that the momentum is up isbuilding.
Gold – daily schedule
As for silver,prices exceeded the trend line support and fell to the main support level at $ 22.90 – 38.2% Fibonacci retracement. Prices are likely to be a double-bottomed chart that has risen twice since the return of key support. The general trend remains biased, as recommended by successive lower highs and low lows. The MACD indicator formed a bullish crossover below the neutral midpoint, suggesting that purchasing power may increase.
Silver – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
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