As the Kansas City Fed Economic Symposium ends, the price of gold is struggling to continue the string of higher highs/lows from the previous week. The precious metal could consolidate during the week amid the failure to test the monthly high ($1832).
GOLD PRICE MIRED BY FAILURE TEST AUGUST HIGH
As Fed Chairman Jerome Powell calmed speculation about an imminent shift in monetary policies, the price of gold managed a push past the 200-Day SMA ($1809). However, the rebound from the monthly low ($1682) could be more of a correction in the overall trend than a change to market behavior. The precious metal is struggling to stay above the moving average.
It seems that the Federal Open Market Committee will continue to be outcome-based. Chairman Powell says it is possible to reduce the pace of asset purchase this year. The update to the US Nonfarm Payrolls report (NFP), may also influence the outlook for monetary policy, as the economy is expected to add 750K jobs to August.
The price of gold may be affected by an improvement in the US labor markets. However, a negative development could cause bullish reactions in bullion. It encourages the FOMC not to change its policy at the September 22nd interest rate decision.
The price of gold could consolidate ahead the NFP report. It is struggling to extend the series highs and lows that it has been making since last week. Furthermore, the rebound from the monthly lowest ($1682) may be a correction rather than a change of market behavior. As the precious metal struggles above the 200-Day SMA ($1809),
