Gold Price Abandons $1750 On Powell’s Speech

Volatility has soared after key US inflation data and following Jerome Powell’s Jackson Hole speech. Fed Chair keeps hawkish tone and stance, reiterating that high interest rates will persist for some time in the battle against hot inflation.

At the time of writing, gold even trades between $1739.90 and $1741.10. Gold came under pressure, after short-lived rebound above 1750$. Gold is having a volatile session, still showing a negative bias after being unable to break key short-term resistance levels. It bottomed at the begging of Powell’s speech and then rebounded.

The precious metal bottomed at $1741, the lowest in three days and then rebounded, to as high as $1755. Again, the price failed to break the critical area and then pulled back under $1750.

Gold remains in negative territory for the day and the odd of another test of the $1740 support remains in place, particularly while under $1750. If gold managed to break firmly above $1755, the intraday outlook could change. Above the next strong barrier is seen at $1770.

Critical for gold price action, US yields are moving without a clear direction. The 2-year yield jumped to 3.45% and then pulled back toward 3.40% while the 10-year hovered around 3.04%, below the level it had prior to Powell’s speech.