- Gold holds on to losses below $1,500 as latest risk-on, USD strength dim the bullion’s allure.
- Jackson Hole Symposium becomes the key event to watch for fresh impulse.
With the market sentiment turning the risk recovery mode on, Gold prices decline to $1,497 by the press time of Friday morning in Asia.
The bullion has been under pressure off-late amid the strength of the US Dollar (USD) and investors’ wait and watch approach ahead of the key speeches from the Jackson Hole Symposium.
Recently published upbeat statements concerning the US-China trade deal, by the US President Donald Trump and White House Economic Adviser Larry Kudlow, also exert downside pressure on the prices.
On a distant note, comments from the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr, that dimmed prospects of using unconventional monetary policy tools by the New Zealand’s central bank, could also have weighed on the precious metal’s price.
Risk tone has been on the recovery mode after slumping the previous day. The US 10-year treasury yield again surpassed the yield on the two-year note while taking rounds to 1.622% by the time of writing.
Traders will be keen to receive clues for the Fed’s future monetary policy, via various Fed speakers including the Chairman, from the Jackson Hole Symposium.
Technical Analysis
Short-term declines are being confined by $1,481/80 region including August 13 low and 21-day simple moving average (SMA), a break of which can recall July month high near $1,452. Meanwhile, $1,510 and $1,528 hold the key to pair’s run-up towards latest high of $1,534.41.
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