Gold witnesses some selling on Friday and snaps a three-day winning streak. All eyes are at Jackson Hole Symposium, as if markets believe that a 75 basis points rate hike next month is likely, XAU/USD would slump, economists at Commerzbank report.
Jackson Hole Symposium to drive gold price action in the short-term
“Though the gold price has recovered somewhat of late, there is no sign of any prolonged upswing. This is being thwarted by persistent ETF outflows, a still firm US dollar and the Fed rate hike expectations.”
“The short-term performance of the gold price will probably depend on the remarks made at the Fed symposium that is currently underway in Jackson Hole. If a 75 bps rate hike by the Fed next month is considered more likely, a renewed price fall would be on the cards.”