Back From One-Week Highs; Powell’s Keynote Eyed

Gold operates ~$3/oz weaker to print ~$1,755/oz, extending a pullback from one-week highs ($1,765.5/oz) made on Thursday.

• To recap, gold backed away from best levels amidst remarks from Kansas City Fed Pres George (voter) re: the Fed holding rates above 4%, with the move lower aided by a limited recovery in the USD (DXY), seeing gold ultimately end ~$7 firmer for a third consecutive higher daily close.
• The precious metal is on track to close a little higher for the week, holding on to the bulk of last week’s ~$55 decline ahead of the freshly-commenced Jackson Hole Symposium.
• The conference will provide the key risk event for gold, with focus centred on Fed Chair Powell’s keynote address later on Friday, coming as Sep FOMC dated OIS have priced in roughly even odds of a 50bp vs. 75bp rate hike at that meeting over the past week.
• From a technical perspective, gold has broken initial resistance at ~$1,762.2/oz (20-Day EMA), exposing further resistance at ~$1,777.2/oz (50-Day EMA). On the other hand, initial support is situated at $1,727.8/oz (Aug 22 low).