Gold and Silver prices started the new trading week under selling pressure, resuming last week’s losses to start the new trading week. The market observed their weakness as an extension of last week’s price action.
Since the end of last month, the markets have been paring back 2023 dovish Federal Reserve policy expectations. At one point, over 2 cuts were priced in for the next year. All the cuts have been fully priced out. The USD has been rallying with Treasury yields.
This action is pressuring anti-fiat gold and silver prices. The latter compete with fiat currency (mostly the US Dollar) and the rate of return an investor can get for them.
The past 24 hours have not seen any risk situation, but it seems traders might have been focusing on what is ahead, mostly the Jackson Hole, coming up on Friday. Fed Chair Jerome Powell and other central bank governors will speak this Friday at the annual Jackson Hole Economic Symposium.
The policymakers will reinforce their commitment to fighting inflation that the world has not seen in 40 years.
Will their 6-day losing streak take a break as support approaches?