Gold Poises for Bargaining Hunting ahead of Jackson Hole Symposium

WikiFX News (26 Aug)- All eyes turn to the annual Jackson Hole symposium this week, which may provide traders with trading opportunities: if central bankers send positive messages to the market, gold prices are expected to go down.

Recently, markets have seen a strong risk-on tilt, which is reflected both in the weak and flat performance of the safe haven currencies other than the U.S. dollar, such as the Japanese yen and Swiss francs, and in the similar pictures of gold. Thus, the focus of the symposium is whether central bankers will update their economic outlook and make corresponding monetary policy. If the signals sent are positive, the demand for non-U.S. dollar safe-haven assets will be dampened.

Since the start of this year, the U.S. dollar liquidity has become ample and the FED has seen little chance to tighten monetary policy, which strongly supported future gold, creating considerable upside space for gold prices .

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Chart: Gold Trend