Gold (XAU/USD), Silver (XAG/USD) Forecast: Gold And Silver Remain Focused On The Fed

Jackson Hole Symposium Make Or Break For Gold And Silver?

Gold and Silver’s recent whipsaw price action has cast a shadow of doubt over further upside prior to the Jackson Hole Symposium, a key catalyst for the imminent move.

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With a focus on inflation and an overheated economy, the virtual summit places Fed Chair.Co Jerome Powell’s speech on Friday’s agenda is at the center of risk sentiment as investors continue to search for clues of tapering.

Although the Jackson Hole Symposium starts today, major risk events on tomorrow’s economic calendar, combined with Powell’s speech could see increased volatility for Gold and the US Dollar throughout Friday’s trading session.

Gold (XAU/USD), Silver (XAG/USD) Forecast: Gold and Silver Remain Focused on the Fed

DailyFX Economic Calendar

Although US economic data has provided sufficient evidence of a swift economic recovery, the spread of the Delta variant and poorer than expected recent retail sales data has dampened sentiment, providing a stumbling block for the Central Bank who has the tough task of juggling between two key metrics, unemployment, and inflation.

For Gold, Silver, and other safe-haven assets that have a negative correlation (move in opposite directions) to the US Dollar, more hawkish commentary from the July FOMC Meeting Minutes saw Gold and Silver prices dwindle throughout last month but a change in tone has since provided temporary relief for Gold and Silver bulls.

Gold (XAU/USD) Price Action

After rebounding off of the 61.8% Fibonacci retracement level of the 2020 move which continues to hold as support at $1,680, Gold bulls are facing a strong wall of confluent resistance, which includes the upper bound of the descending channel that has been forming since prices peaked in August last year. As demonstrated on the daily chart below, bulls have a number of potential stumbling blocks ahead should the bullish trend continue to further recover prior losses.

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