EFFECT OF POWELL SPEECH ON GOLD PRICE

Federal Reserve Chair Jerome Powell used his final keynote speech as the central bank’s leader to signal two big developments. He suggested that an interest rate cut in September is possible and unveiled the Fed’s updated “consensus statement,” which guides how it sets rates. The remarks come nine months before he is set to leave his post and help define his legacy. He stressed that any rate cut decision would be based on economic conditions, not political pressure from the White House.

Gold price moved higher following Jerome Powell’s speech at Jackson Hole. His comments suggested the Fed could cut rates in September, a scenario that typically boosts gold by lowering the cost of holding non-yielding assets. Still, Powell stopped short of making a firm commitment, leaving investors cautious and keeping the rally in check.

Gold is gaining strength after Jerome Powell’s dovish remarks at Jackson Hole, with stagflation worries, a weaker labor market, and a softer U.S. dollar supporting bullish signals in precious metals.

The recent rise in wholesale prices has added to these fears, making gold an attractive hedge against both inflation and economic slowdown.

On the technical side, spot gold has rebounded from its 100-day simple moving average (SMA) and is showing bullish momentum. Support from both the 50-day and 100-day SMAs points to further upside. Key resistance is seen between $3,450 and $3,500, and a clear break above $3,500 could open the door to a stronger rally in the weeks ahead.

Gold priced in euros also moved higher, though the gains were far smaller than those in U.S. dollars. With interest rate expectations already adjusted, further upside in gold appears limited for now. This was reflected in yesterday’s slight pullback, suggesting the metal is unlikely to break above $3,400 without fresh catalysts. One potential driver could be political turbulence, such as President Trump removing a Federal Reserve governor, which would raise concerns over the Fed’s independence.

Markets typically price in interest rate changes well before they occur, so gold often reacts to shifting expectations rather than the actual policy move. This makes Federal Reserve communication especially important for gold, as seen with the market’s close attention to Jackson Hole s