Market Outlook #gold | #usd - Gold prices are edging higher | GOLDFXCC™ - [TRIAL] Channel️

Market Outlook
#gold | #usd

- Gold prices are edging higher on Wednesday as U.S. Treasury yields test a key resistance area that could determine the direction of bullion’s next major move. Meanwhile, a potentially bearish technical pattern by the U.S. Dollar Index suggests momentum may be getting ready to shift to the downside, which could also give gold a near-term boost.
However, today’s early price action is likely being fueled by position-squaring and adjusting ahead of Friday’s highly anticipated speech by Federal Reserve Chairman Jerome Powell at the central bankers’ symposium at Jackson Hole, Wyoming.

- There is just too much uncertainty in the markets as to whether Powell will suggest going big with a super-sized 75-basis-point rate hike in September or if he backs a milder 50-basis-point.
- The current reading from the FedWatch Tool indicates the same assessment with the chances of a 50-basis-point rate hike coming in at 49.5% and the odds of a 75-basis-point rate hike sitting at 50.5%.


- Three days of short-covering in gold is not a long enough time period to signal the momentum has shifted in the market, but since Treasury yields are dipping and the U.S. Dollar is paring some of its recent gains, it does indicate investor indecision and impending volatility.

Fed Chair Jerome Powell’s speech at Jackson Hole on Friday will be closely watched for more clues on future interest rate hikes. The price action suggests that traders expect some strong guidance from Powell and hopefully, he doesn’t disappoint. Powell is going to either put a lid on the volatility with decisive remarks or contribute to the volatility by remaining on the proverbial fence.