All Eyes on Jackson Hole Summit and Fed Chair in Gold Market
While the ounce price of gold moves sideways, investors are focusing on Fed Chair Kevin Warsh's Jackson Hole speech.
While the ounce price of gold follows a sideways course around 4,600 dollars, investors are awaiting the statements to be made by Fed Chair Kevin Warsh at the Jackson Hole meeting.
The Focal Point of the Markets is the Fed Chair
Gold investors will keep their eyes on the critical speech that US Federal Reserve Chair Kevin Warsh will deliver at the Jackson Hole meeting at 17:00.
The messages Warsh will give are of great importance for gold prices as they will provide significant clues regarding when interest rates might change in the US.
Interest Rate Expectations and Inflation Status
The markets are pricing in a 65 percent probability that the Fed will not change interest rates in September.
However, the high course of inflation in the US keeps the probability of a rate hike until December above 70 percent.
Effects of the Dollar and Debt Burden
Gold finds support from concerns that the dollar could lose value and that the growing debt burden of the US could create risks in the economy.
The US Treasury's expansion of its bond buyback program increased concerns regarding the country's debt management, creating pressure on the dollar.
Geopolitical Developments and Risks
Despite signs of diplomatic progress in the Middle East, tensions regarding Russia are showing a renewed increase.
These geopolitical developments lead to the maintenance of high prices in oil and the continuation of uncertainty in global markets.
Technical Levels and Support Points
According to technical evaluations, it is stated that spot gold carries a specific risk of decline in the short term.
While the 4,511 and 4,500 dollar levels stand out as the initial support points in the ounce price, it is evaluated that the price could retreat to 4,420 dollars if selling pressure continues.