- Volatility spiked after U.S. data and Powell speech.
- The Fed chairman maintained a hawkish tone, saying high interest rates will continue for some time.
- Gold came under pressure after briefly rallying above $1750.
The golden trading session was volatile, failing to break out of the key short-term The negative trend remains after the resistance level. Bottomed out at the start of Powell’s speech. Up to $1755. The price again failed to break out of the key area before falling back below $1,750. Still in negative territory for the day, the possibility of another test of support at $1740 remains, especially below $1750. The intraday outlook could change if gold manages to break above $1,755. Above, the next strong resistance is at $1770. Crucially for gold price action, there is no clear direction for the movement of U.S. yields. The 2-year Treasury yield jumped to 3.45% before falling back to 3.40%, while the 10-year yield hovered around 3.04%, below where it was before Powell’s speech.
The Fed chairman mentioned that high interest rates will continue for some time, adding that “history strongly warns against premature easing”. Powell’s tone was seen as “hawkish.”
Friday’s latest report showed a better-than-expected reading from colleges Michigan’s August consumer confidence index was 58.2, lower than The market expected 55.2.
Earlier Friday, a report showed that the core personal consumption expenditures price index unexpectedly fell 0.1% in July, while The annual rate decline slowed to 6.3% from 6.8% in June, versus expectations for 7.4%.
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