The world of finance is abuzz as Gold price makes a strong comeback on Friday, following a late rebound on Thursday. This surge in Gold price can be attributed to the weakening US Dollar (USD) and a sell-off in USD/JPY, coupled with declining US Treasury bond yields.
Market Anticipation for Powell’s Speech
Investors are on edge in Asian trading, eagerly awaiting US Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. Powell’s remarks are expected to provide crucial insights into the Fed’s future interest rate decisions, especially amidst speculations of aggressive rate cuts due to weakening labor market conditions.
The current risk-off sentiment in the market has led to increased demand for US government bonds, pushing down Treasury bond yields and subsequently causing the USD to drop. The USD/JPY pair also experienced a sell-off following hawkish comments from Bank of Japan Governor Kazuo Ueda.
Despite the recent uptick in Gold price, it is poised to record a second consecutive weekly loss, as the market has already priced in a Fed rate cut for September. However, the magnitude of future easing measures will largely depend on Powell’s comments at the Jackson Hole symposium.
Technical Analysis of Gold Price
From a technical standpoint, Gold price remains bullish as long as it stays above the triangle support level at $2,470. The recent breakout from a symmetrical triangle pattern and the upward momentum in the 14-day Relative Strength Index (RSI) indicate a favorable outlook for Gold price.
If Gold buyers manage to surpass the record high of $2,532, the next resistance levels to watch are at $2,550 and $2,600. On the downside, immediate support lies at $2,470, with further support at $2,450.
Economic Indicator: Fed’s Chair Powell Speech
Next release: Fri Aug 23, 2024 14:00
Frequency: Irregular
Consensus: –
Previous: –
Source: Federal Reserve
Stay tuned for updates on Jerome Powell’s speech, as it could have significant implications for the financial markets.
Analysis: Gold price is on the rise as investors await Powell’s speech, which could provide clarity on the Fed’s future actions. Technical indicators suggest a bullish trend for Gold price, with key resistance levels at $2,532 and $2,600. However, a breach of support at $2,470 could signal a downward correction. Keep an eye on Powell’s comments for potential market moves.