Gold at Resistance into Jackson Hole

August 25, 2016

With the Economic Symposium beginning in Jackson Hole Wyoming tonight, all eyes have been focused on the US Dollar.

After raising rates for the first time in a decade in 2015, it’s all gone a little quiet at the Fed. Expectation has however started to pick up this week in anticipation of a hawkish delivery from Yellen in Wyoming. If this is in fact the case, then a Gold price at resistance might be the spot to look for a classic re-pricing as market expectations are forced to catch up with reality.

USD and Gold have a classic negatively correlated relationship. A relationship that you can easily see by using the ‘correlation matrix’ in the Vantage FX Smart Trader Tools package.

Inverted correlation between USD and Gold

Taking a look at the XAU/USD chart, we can see that heading into the meeting, price is perched precariously at higher time frame resistance.

GOLD Daily:
Click on chart to see a larger view.

Just last week we had the Fed sending mixed messages to markets about whether a rate hike was back on the cards for 2016. Heck, maybe even as early as September!

While I’m not as confident as some market commentators, the fact that this is now being openly discussed by Fed members certainly is interesting. You know what they say about where there’s smoke…

Either way, just picturing the rejection off this major higher time frame resistance level has me salivating.


On the Calendar Thursday:
EUR German Ifo Business Climate

USD Core Durable Goods Orders m/m
USD Unemployment Claims
ALL Jackson Hole Symposium

Trade Forex with ECN broker, Vantage FX.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.


Free Daily Market Update

Live Spreads



Sign up to the latest forex news and daily FX trading setups

Get started with a FREE $50,000 demo account