Gold flash crash reversed, feed supports taper signal

Gold price analysis and news

  • gold Flash crash reversed
  • Fed corresponding to taper signal

Gold Flash Crash has been reversed

In a week that started with Flash crash with 4.5% lower gold, Precious metals end the week with a small weekly profit. But perhaps more important is the breakback beyond 1760. This has been an important point of precious metals over the past year.

Gold chart: 10 minute time frame

Gold chart

Source: Refinitiv

Topside level of focus

Now that 1760 has been removed, the focus of the golden bull will be on the resistance located at 1790-1800, which previously served as support for the previous month. That said, the recent decline in greenbacks and US yields stems from weak sentiment data at the University of Michigan. U.S. dollar Perhaps at the Jackson Hole Symposium this month, they will be limited as the Fed near the time they provide taper signals. However, the impact on gold can mean that 1790-1800 may be the first test. In addition, the 1800-1815 DMA cluster makes the psychological 1800 level a difficult area to crack.

Fed corresponding to taper signal

Looking ahead to next week, Hole is on a docket, but given that he will host the City Hall with teachers from across the United States, he is unlikely to comment on significant changes to monetary policy. Another week to discuss at the Jackson Hole Symposium, waiting instead. Elsewhere FOMC Given that the minutes have been released and recent Fed members are talking about this year’s tapering, it’s unlikely that the minutes are on the dovish side.

This Week’s Fed Commentary

Federal Reserve Board of Governors (2021 voters)

In terms of pricing, the Fed has made significant strides towards benchmarking. There seems to be more room for action in the labor market.

Fed’s Bostic (2021 voters)

Fed believes it could start declining purchases between October and December, but it could move forward. Substantial further progress targets for inflation have been effectively achieved, and with a strong employment increase of a month or two, employment could be achieved.

Federal Reserve Board of Governors Rosengren (2022 voters)

The Federal Reserve Board of Governors should announce in September that it will begin saving $ 120 billion in purchases of Treasury bonds and mortgage-backed securities this fall.

Fed’s Evans (2021 voters)

Before deciding to taper asset purchases, I would like to take a look at some more employment reports.

Gold Price Chart: Daily Timeframe

Gold chart

Source: Refinitiv

Gold flash crash reversed, feed supports taper signal

Source link Gold flash crash reversed, feed supports taper signal

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