The precious metal isn’t up to much so far today, with traders largely waiting on Fed chair Warsh’s appearance in Jackson Hole later. We’re seeing price mostly stick around the $4,600 mark today, much like it has the day before. And so the same backdrop remains: Gold hopes to keep early week momentum ahead of Warsh showdown
Similar to yesterday, near-term price action continues to see gold hold in between its key hourly moving averages.
“The short-term chart is more mixed as buyers are now doing battle around the 100-hour moving average (red line). They have to keep above that to maintain a more bullish near-term bias. However, there is some fallback potential to around $4,580-00 for now with dip buyers stepping in overnight.”
With all eyes on Fed chair Warsh next, the question is will he deliver anything of note for markets to react to?
All else being equal, the expectation is that he will stick with his no forward guidance mantra while also not likely to offer much pushback against Bessent’s action of stepping on his toes.
In that lieu, markets might take that as a nod to the “Bessent put” if anything else. So even if Warsh doesn’t say much of anything, we could see that hurt the dollar further in the short-term. As such, gold stands to benefit under such circumstances with the dollar debasement narrative returning to the fray.
