Federal Reserve Chairman Powell delivered a speech at the annual Jackson Hole central bank annual meeting, but he did not give a clear attitude. The non-US varieties that were ready to move rose and fell, and gold continued to hover at the $1,750 line.
This week, the market is paying attention to the annual meeting of the Jackson Hole central bank. With the atmosphere of Fed officials supporting interest rate hikes, investors hope to get the latest monetary policy clues from Powell’s speech, thereby breaking the current market consolidation pattern.
However, Powell explained in his speech that raising interest rates to lower inflation will reduce economic growth, emphasizing that this is necessary. Whether the rate hike in September is 50 basis points or 75 basis points depends on the data.
Powell’s speech was short and did not make a substantial statement, and the market was still interpreting it. Looking at the overall situation, Powell’s subtext may be that if the inflation data in August is high, raising interest rates by 75 basis points is still an option, and suppressing inflation is still the Fed’s top priority.
Affected by various factors, the US dollar and non-US varieties fluctuated greatly today. Before the meeting, non-US varieties including gold were ready to move, and they wanted to expand the scale of the rebound during Powell’s speech. As the market interprets Powell’s subtext, non-U.S. currencies pared gains significantly. Whether it is a real fall or a fake rise, continue to pay attention to the market trend. It is not advisable to draw conclusions too early. The stable people should look for entry opportunities next week.
The price of gold is still fluctuating at $1,750 in the short term. According to the analysis in recent days, gold generally maintains a wide range of 2075-1680, and 1800-1680 is the key price in the market outlook. If it returns to 1800, it will confirm the breakthrough of the range and continue to rebound. If it breaks through 1680 effectively, it will open up more room for a downward trend. The short-term trend is concerned about 1780 resistance and 1730 support, and it is difficult to open without breaking the trend.
After the annual meeting of the central bank, there was no obvious breakthrough in gold, and the consolidation may continue until the FOMC meeting in late September.
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