Gold Prices Remain Under Pressure, as Traders await U.S Federal Reserve for Direction
The recent fall in the bullion’s value was triggered by the U.S dollar standing relatively stable at more than one-week high, while gold traders wait for Jerome Powell’s speech at Jackson Hole scheduled to hold later this week for vital insights on the direction of America’s monetary policy.
precious metal printed its second consecutive weekly decline. As the greenback’s recent rebound from its two year low is considered as the major macro for the yellow metal latest weakness.” data-reactid=”20″>The precious metal printed its second consecutive weekly decline. As the greenback’s recent rebound from its two year low is considered as the major macro for the yellow metal latest weakness.
In addition, global investors flocked into risker assets, like stocks, currencies thereby pulling back gold’s bullish run as recent bias coming from Wall Street seems to portray that the worse is definitely over, making gold bulls to retreat from gold’s record high.
gold bulls have been able to keep the price of gold above $1,925 a critical support level, competition from multiple financial assets, especially global equities will ensure higher price volatility in the yellow metal.” data-reactid=”26″>Although gold bulls have been able to keep the price of gold above $1,925 a critical support level, competition from multiple financial assets, especially global equities will ensure higher price volatility in the yellow metal.
Gold bulls will need macros that include higher inflation break-evens or renewed greenback downward pressure to take the price beyond $1,975.
It’s expected that if there are no major headlines this week, the U.S dollar and precious metal could consolidate within current ranges in the short term, as COVID-19 caseloads surge still remain a growing concern among traders.
Despite the current volatility in the yellow metal, gold is up over 25% so far this year. Global Central banks have pumped a significant amount of money into an already bloated financial system coupled with the fact that interest rates remain close to zero in emerged markets, in order to curb the negative impact of the COVID-19 onslaught on the world’s global economy.
Gold bulls have a strong case keeping the price above $1,800, except the registered Russian COVID-19 vaccine or other leading vaccines in the pipeline start to make the needed impact.
economic calendar.” data-reactid=”31″>For a look at all of today’s economic events, check out our economic calendar.
article was originally posted on FX Empire” data-reactid=”32″>This article was originally posted on FX Empire
