Gold just had its worst week in months.
#GoldFalls3.24%ThisWeek
Gold futures fell 3.25% this week to around $4,478/oz, snapping a three-week winning streak. (The Wall Street Journal)
What caught my attention is that most of the damage came after Fed Chair Kevin Warsh’s Jackson Hole speech.
The market suddenly started pricing in a much higher chance of a September rate hike - around 58%, up from 36% before the speech. (Reuters)
And that changes the equation for gold.
Higher rates → higher yields → stronger dollar → less attractive non-yielding assets like gold.
But I don’t think the interesting question is simply whether gold can fall further.
Gold had just climbed to around $4,696/oz earlier in the week, its highest level in more than three months. (Energy News)
So is this really a change in the gold trend?
Or are we just seeing the market quickly unwind part of a crowded rally after the Fed pushed back against expectations for easier policy?
That’s what I’ll be watching next.
$XAU $BNB $TRUMP
#GoldFalls3.24%ThisWeek
Gold futures fell 3.25% this week to around $4,478/oz, snapping a three-week winning streak. (The Wall Street Journal)
What caught my attention is that most of the damage came after Fed Chair Kevin Warsh’s Jackson Hole speech.
The market suddenly started pricing in a much higher chance of a September rate hike - around 58%, up from 36% before the speech. (Reuters)
And that changes the equation for gold.
Higher rates → higher yields → stronger dollar → less attractive non-yielding assets like gold.
But I don’t think the interesting question is simply whether gold can fall further.
Gold had just climbed to around $4,696/oz earlier in the week, its highest level in more than three months. (Energy News)
So is this really a change in the gold trend?
Or are we just seeing the market quickly unwind part of a crowded rally after the Fed pushed back against expectations for easier policy?
That’s what I’ll be watching next.
$XAU $BNB $TRUMP
