Gold drops in volatile trading as investors digest Powell’s Jackson Hole speech


Gold futures fell on Thursday in volatile trading that saw prices move back and forth by as much as 2%.
Federal Reserve Chairman Jerome Powell announced changes to the central bank’s policy framework in a speech at the Jackson Hole Economic Symposium that were seen as offering a more accommodating and optimistic monetary policy for bullion buyers long-term. However, the policy change was widely expected, and analysts said some investors resorted to profit-taking following the speech.

In a statement, the Fed said it had adopted an “average inflation target” and recognized the benefits of a strong labor market. The Fed’s strategy maintains 2% annual inflation as a target, but the Fed has said it “seeks to achieve average inflation of 2% over time.”
Lis:Fed unanimously adopts new strategy, widely seen as leading to easier policy “It’s hard to overestimate the benefits of maintaining a strong labor market, a key national goal,” Powell said in his prepared remarks on the policy change.
Gold traders already knew that the Fed chairman’s speech would mention inflation, and gold prices initially rose, climbing over $ 30 an ounce, in the initial wake of the speech, Jim Wyckoff, senior analyst at, told MarketWatch. Prices were then pulled lower as traders “discounted” Powell’s speech because it was not news news, he said.
The important thing is that “the global market [is] move on to more inflation, ”said Wyckoff, whose prices for many commodities are climbing. This is a shift in psychology “from a price deflation which has been a problem for the past 10 years” to a situation of a persistent stimulus in central bank monetary policy leading to problematic price inflation. . “This is what will continue to drive up the prices of precious metals.”
Looking ahead to next week, Wyckoff expects to see “some price action on the side.”
In transactions on Thursday, December or GCZ20,
fell $ 24.60, or 1.3%, to $ 1,927.90 an ounce. Prices traded as low as $ 1,914.70, but also as high as $ 1,987 during the session. Prices rose 1.5% on Wednesday to end the day at around a week-long high.
September silver SIU20,
meanwhile, lost 55 cents, or 2%, to $ 26.895 an ounce, after jumping 4.4% on Wednesday, also marking its highest settlement in about a week.
At the same time, new claims for unemployment benefits in the United States fell again in late August to just over 1 million and resumed a downtrend, perhaps signaling the resumption of a gradual recovery but painfully slow in the US labor market.
Initial jobless claims, a rough indicator of layoffs, fell from 98,000 to 1 million from 1.1 million the previous week, the Labor Ministry said Thursday. Meanwhile, a historic decline in US gross domestic product in the second quarter has been revised to 31.7% from 32.9%.
Among other metals Thursday, December copper HGZ20,
which is now the most active, was trading at $ 2.973 a pound, down 0.3%. October Platinum PLV20,
lost 1.5% to $ 926.40 an ounce, while the most active December palladium contract PAZ20,
thrown 1.1% to $ 2,187.90 an ounce.


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