Gold Price Futures (GC) Technical Analysis – Traders Bracing for Hawkish Tone in Powell’s Jackson Hole Speech

WASHINGTON (Aug  26)  Gold futures are inching lower while trading in a narrow range on Friday ahead of a widely expected speech from Federal Reserve Chairman Jerome Powell at 14:00 GMT. After posting a three-day rally, gains are being capped today by firm Treasury yields and a stronger U.S. Dollar.

Powell’s speech at the central bankers’ symposium in Jackson Hole, Wyoming will be monitored closely by market participants for any clues on how aggressively the U.S. central bank will continue tightening monetary policy, and for indications on a potential change of strategy in case of an economic slowdown.

At 05:30 GMT, December Comex gold futures are trading $1769.00 down $2.40 or -0.14%. On Thursday, the SPDR Gold Shares ETF (GLD) settled at $163.75, up $0.50 or +0.31%.

Core PCE Price Index Expected to Drop

Besides Powell’s speech, traders will also get the opportunity to react to several key U.S. economic reports.

At 13:30 GMT, the U.S. will release data on Core PCE prices, Goods Trade Balance, Personal Income, Personal Spending and Preliminary Wholesale Inventories.

At the same time Powell is expected to deliver his speech, reports on revised University of Michigan Consumer Sentiment and Revised University of Michigan Inflation Expectations will be released.

These reports aren’t likely to sway Powell but they will signal to the market lower inflation and a slowing economy.

REUTERS