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Gold Prices Down Ahead of Jackson Hole Symposium, Powell Speech

Published 08/20/2019, 12:48 AM
Updated 08/20/2019, 12:50 AM
© Reuters.

© Reuters.

Investing.com - Gold prices were down on Tuesday in Asia as traders awaited the upcoming Jackson Hole Symposium in Wyoming and a speech by Federal Reserve Chairman Jerome Powell.

Gold Futures for December delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.4% at $1,505.55.

The fall came after U.S. Commerce Secretary Wilbur Ross confirmed overnight that Washington will extend for another 90 days a license that allows China’s Huawei Technologies Co. to temporarily continue doing business with U.S. companies. The news eased trade tension between China and the U.S., sending stocks higher today while the safe-haven gold retreated.

The Fed’s annual gathering of central bankers and policymakers from Thursday through Saturday is expected to be in focus as it would provide fresh clues on when the next U.S. rate cut will be.

Ahead of the Wyoming event, the Fed on Wednesday will publish minutes of its July 30-31 meeting. Powell’s speech on Friday will also be a highlight for this week.

The European Central Bank will also report its July minutes on Thursday, a day after the Fed’s.

Barani Krishnan, senior commodity analyst at Investing.com, noted a slowdown in gold’s recent rally and said investors were waiting for more signs of central bank easing, potentially from the Jackson Hole event, before committing to fresh long positions.

Latest comments

Gold: 20th August review. .  Gold prices were in positive trend due to Hong Kong fears; Global recession and central bank rate cut decisions also effect.. . . In early morning session of US market, Gold Futures, of December contract, traded flat to positive, around $1518.70 range, up by 0.45%. According to my view, traders will see profit booking in Gold and Silver today.. . . Traders will keep an eye on Fed chairman Powell's speech at Jackson Hole this week. The main agenda for this meeting will be 'Challenging the monetary policy decision' and based on that one can take the decision of the next trend for Gold and Silver.. . . All Asian and European stocks, traded flat to positive today and Dow-30 future is also up by 10 points today.. . . US Dollar Index, September contract, traded, $98.292 range, and made almost third week high against all six major currencies.. . Intraday fundamental strategy for Gold:. Entry price range- $1518.50 - $1520.90. . . keep R1 $1530.00. . . wait S1 $1503.00. wait S2 $1498.90. wait S3 $1490.00
Gold wins with any scenario from the Fed. A cut will be good but if not a definite move to zero rates that will remain there for quite a while.
What rosy picture will be painted today I wonder?
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