Gold is traded at around $1,765, while investors are in wait-and-see mode. Their attention is focused on the Jackson Hole symposium.
Indeed, in the popular ski destination of Wyoming, later today Jerome Powell will hold his long-awaited speech, closing the 2022 economic summit hosted by the Fed. After the recent mixed U.S. economic data, investors are expecting the Federal Reserve Governor to provide some further details about the next steps of monetary policy that will be followed by the U.S. Central Bank.
So far this year the Fed has already hiked rates from 0.25% to 2.50%, but investors are awaiting the Bank based in Washington to raise rates to 3.50 – 3.75% by the end of 2022.
However, there are no big expectations for next year, with rates that should more or less remain steady. But the uncertainty remains significant, with many unsolved questions, like the trajectory of inflation and if the Fed will continue its hawkish path into 2023.
Considering the overall scenario, gold has shown relatively modest volatility in the last few days, remaining in the range of $1,750 – 1,780.
From a technical point of view, a surpass of the resistances placed at $1,780 and $1,790 could pull up the price to a new test of $1,820. On the other hand, a decline below $1,750 could be seen as a signal of weakness.
Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. Carlo provides regular commentary for UK notable outlets including the BBC, Telegraph, The Independent, Bloomberg, FX Empire and Reuters.
With a credential background in Economic Finance and International Exchange (MA), his critical analysis on gold and silver’s markets performance is frequently quoted by leading publications, week-on-week.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.