Gold traders await Powell’s Jackson Hole speech

Gold fell below $2,500 a troy ounce as a stronger US dollar dampened investor demand, ANZ commodity strategists note.

Gold markets are waiting for Powell to speak

“Gold fell below $2,500/oz. This came amid concerns that the market is overstating the prospect of aggressive Fed rate cuts. Swap dealers are pricing in close to 100bps of discount by the end of the year, a level that many leading commentators consider too much.”

“Gold investors’ positioning is also extremely tight, leaving the market open for selling should the Fed not live up to these expectations. This lends great weight to Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole later today.”