Powell’s Dovish Turn at Jackson Hole Ignites Gold’s Bullish Rally
The bullion asset ended the week on a strong note, building up bullish momentum and rising above $3,350 on Friday.
Quick overview
- The bullion asset closed the week strong, surpassing $3,350 and gaining bullish momentum.
- Investors are focused on upcoming US economic data following Fed Chairman Jerome Powell's remarks at the Jackson Hole Symposium.
- Easing geopolitical tensions initially hindered gold, but recent developments regarding US security guarantees for Ukraine have shifted the market dynamics.
- US President Trump has called for Fed Governor Lisa Cook's resignation amid mortgage fraud allegations, while Treasury bond yields dipped, boosting gold prices.
The bullion asset ended the week on a strong note, building up bullish momentum and rising above $3,350 on Friday.
Investors will be closely monitoring high-impact economic data releases from the US, as Fed Chairman Jerome Powell’s comments at the Jackson Hole Symposium have caused them to reassess the Fed’s policy outlook.
XAU/USD earlier faced roadblocks amid easing geopolitical tensions. US special envoy Steve Witkoff stated over the weekend that during his meeting with Russian President Vladimir Putin on Friday, US President Donald Trump agreed that the US would provide Ukraine with security guarantees.
President Volodymyr Zelenskyy of Ukraine met with President Trump late Monday. Zelenskyy stated that they are prepared to meet with Putin next, and US Secretary of State Marco Rubio confirmed that they will collaborate with both non-European and European allies to provide security guarantees for Ukraine.
Gold faced difficulties at the beginning of the week due to easing geopolitical tensions. US Special Envoy Steve Witkoff stated over the weekend that he and Russian President Vladimir Putin agreed that the United States would provide Ukraine with security guarantees after their meeting on Friday. President Trump met with Volodymyr Zelenskyy of Ukraine late Monday. According to Zelenskyy, they are prepared to meet with Putin next.
US Secretary of State Marco Rubio affirmed that they will collaborate with both European and non-European nations to provide security guarantees for Ukraine. The risk-averse market environment, meanwhile, assisted Gold in containing its losses during the first part of the week.
US President Donald Trump called for Fed Governor Lisa Cook to step down over allegations of mortgage fraud. The US Treasury bond yields’ dip contributed to an increase in the late American session of the week.
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