Gold prices fell in amidst of the Jackson Hole Symposium

[FXOcrypto]

Gold price yesterday recorded a decline at a low of $2470 from a high of $2514 by drawing a bearish candlestick with a shadow at the bottom of the candle. The decline in gold prices answered the previous candlestick's indecision.

US Manufacturing PMI data released yesterday showed the actual value of 48.0 lower than the forecast of 49.5. However, the US Services manufacturing PMI showed actual data of 55.2, higher than the forecast of 54.0. The actual data is also higher than the previous data release of 55.0. The same US unemployment claims were expected to be 232k higher than the previous data release of 228k.

Weak US data signals an imminent US interest rate cut and continues to support Gold in general. The Fed is expected to cut interest rates in September. According to the CME group's FedWatch tool, expectations for a 25 bps rate cut rose 75%, while a 50 bps cut was 25%. A higher cut rate might support gold as a non-yielding asset.

Today investors may will wait for Jerome Powell's speech as head of the central bank which controls short-term interest rates and monetary policy to see the statement as hawkish or dovish.
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[Techbomber81]

In response to the recent movements in gold prices, it's clear that the market is reacting to a mix of economic data and expectations around future U.S. interest rate decisions. The drop from $2514 to $2470, coupled with a bearish candlestick pattern, suggests that sellers took control after a period of indecision, likely driven by the weak U.S. Manufacturing PMI data.

However, the stronger-than-expected U.S. Services PMI and the slight increase in unemployment claims present a mixed economic picture. This uncertainty may lead investors to anticipate potential interest rate cuts by the Federal Reserve, which could provide support for gold as a non-yielding asset.

Investors should keep a close eye on Jerome Powell's upcoming speech, as his comments could provide further insight into the Fed's policy direction. If Powell leans dovish, signaling a rate cut, we could see a bounce back in gold prices. On the other hand, a more hawkish tone could pressure gold further.

Overall, while the recent decline in gold prices reflects current market sentiment, the outlook remains tied to ongoing economic data and Fed policy signals.