Gold prices surged more than 7% off the monthly low before exhausting into technical resistance this week. The levels that matter on the XAU/USD technical charts.
Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUD/JPY-bullish contrarian trading bias.
The tea leaves suggest that a taper announcement is coming soon – just not necessarily at the Federal Reserve’s Jackson Hole Economic Policy Symposium.
Headlines coming out of the Fed Economic Symposium appear to be dragging NZD/USD as Federal Reserve officials show a greater willingness to scale back monetary support.
Financial markets are showing increased volatility in the run-up to Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium later this week.