The price of gold is currently (25.08.20) rising slightly to $ 1,950 from levels below $ 1,940 on Friday. At the moment it looks more like a stabilization of the precious metal. This week there could be a strong move in gold. Statements by Fed chairman Jerome Powell could be responsible for this. The entire capital market, but above all foreign exchange, bond and gold traders will be watching the central bankers’ meeting in the tranquil Jackson Hole in the US state of Wyoming, which is being organized by the Kansas City Fed, starting Thursday.
Gold price before strong movement?
It could be that Jerome Powell is suggesting that he continues to advocate aggressive monetary policy (print lots of money and flood everything) and whether the Federal Reserve might accept a higher rate of inflation in the US. This would of course be an important aspect for a possibly strong movement in the gold price! Currently, the gold price, which has been slightly more stable since Friday, can be justified by the fact that the US dollar is coming back a little (dollar index loses from its peak on Friday from 93.47 to 92.89 index points). And one can cite the fact that the yield on ten-year US government bonds, which tends to fall a little further, is one of the reasons. In the last few days it fell from 0.70 percent to 0.62 percent this morning (currently 0.64 percent).