The world gold price has recently shown signs of stagnation
Updated
The world gold price has recently shown signs of stagnation, especially amidst significant events. Currently, the price of gold stands at $1,941.85 per ounce, experiencing a slight decrease of 0.27% as of 11:28:33 according to real-time CFD data.
Recent trading has seen gold prices displaying unclear signals. Over the 5-minute timeframe, the market is in a neutral state, while on the hourly chart, there is a bearish sentiment. However, on the daily chart, the market still maintains a neutral stance, and the monthly timeframe indicates strong buying.
These developments can be explained by investors awaiting the upcoming speech by the Chairman of the Federal Reserve (Fed), Jerome Powell, at the Jackson Hole Symposium. This conference is taking place from August 24th to August 26th, and the market expects Powell to provide clarity regarding future interest rates and whether there will be continued rate hikes.
David Meger, Director of Metals Trading at High Ridge Futures, stated, "There is still an expectation that most Fed officials will continue to emphasize the need to resist inflation pressures." This may put pressure on the Fed to maintain a higher interest rate policy in the future.
Although recent data shows a decrease in initial jobless claims in the United States, the labor market is still facing challenges, and this implies that the Fed may need to sustain higher interest rates to stabilize the economy.
In the context of the US dollar rebounding and US Treasury bond yields increasing following data on jobless claims, the appeal of gold may be diminishing. Furthermore, the opportunity cost of holding gold, a non-yielding asset, is also increasing due to higher interest rates.
Recent trading has seen gold prices displaying unclear signals. Over the 5-minute timeframe, the market is in a neutral state, while on the hourly chart, there is a bearish sentiment. However, on the daily chart, the market still maintains a neutral stance, and the monthly timeframe indicates strong buying.
These developments can be explained by investors awaiting the upcoming speech by the Chairman of the Federal Reserve (Fed), Jerome Powell, at the Jackson Hole Symposium. This conference is taking place from August 24th to August 26th, and the market expects Powell to provide clarity regarding future interest rates and whether there will be continued rate hikes.
David Meger, Director of Metals Trading at High Ridge Futures, stated, "There is still an expectation that most Fed officials will continue to emphasize the need to resist inflation pressures." This may put pressure on the Fed to maintain a higher interest rate policy in the future.
Although recent data shows a decrease in initial jobless claims in the United States, the labor market is still facing challenges, and this implies that the Fed may need to sustain higher interest rates to stabilize the economy.
In the context of the US dollar rebounding and US Treasury bond yields increasing following data on jobless claims, the appeal of gold may be diminishing. Furthermore, the opportunity cost of holding gold, a non-yielding asset, is also increasing due to higher interest rates.
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