Gold still faces many difficulties on the way up

Hello friends! Gold prices increased slightly today, with gold rising $2.7 to $1,894.3 per ounce.

Gold is still trading at its lowest level in the past 5 months during this week's trading session. The upward momentum of the precious metal is still being limited by the increasing yields on US Treasury bonds, along with a technical chart that shows a downward trend.

The Federal Reserve (Fed) recently released minutes from their July policy meeting, revealing that most Fed officials perceive significant risks of inflation, which may require tighter monetary policies.

Therefore, the market is expecting Chairman Powell to provide some indication that the US Central Bank has reached the end of its most aggressive tightening cycle in 40 years and only then can gold escape its current level and make a breakthrough.

Comment:

Investors' focus this week will be Fed Chairman Jerome Powell's speech on Friday, when central bank governors around the world gather in Jackson Hole to attend. Annual conference.

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good luck everyone

Comment:

Despite recent selling pressure, analysts note that the gold market is resilient despite bond yields rising to new 15-year highs.

Comment:

although yields could move higher in the near-term, an end to the cycle of central bank tightening will eventually hold back gold's rally.

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On August 25, Fed Chairman Jerome Powell will give a speech giving his views on the Fed's monetary policy in the near future.

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Short-term Treasuries currently offer yields around 5%, which is significant competition for gold.

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The longer the Fed maintains these high interest rates, the greater the risk they pose to the economy.