As of last week, the prices of gold were on an impressive bullish run scaling the psychological level of $1,800 and even positioned to soar higher. For gold investors, the prospect of prices going higher was comforting, however, the present price outlook supports the contrary. The price level of $1,800 remains the support level around which gold revolves while it has experienced a slight drop. Although the upward movement was slightly slowed, there are expectations of another steady rise. It was earlier speculated that the Jackson Hole Symposium would affect the movement of market price and it occurred just as predicted.
At the end of the event, the demand for gold, silver, and other commodities increased rapidly causing prices to move in that regard. Their demand is traced to the commentary made by Jerome Powell which saw these commodities being demanded in high quantities. It is worthy to note that the commodities influenced by the Jackson Hole event have a high resistance to inflation even as inflation itself goes beyond the monetary target policy of 2%. The bullish run saw gold prices moving to about $1,818 before being met with resistance at the level which is also the Fibonacci retracement level of this year’s move.
The year has seen massive shifts and changes in the commodity’s prices with the recent happenings and developments. The current political tension in Afghanistan and the Middle East is a major contributor to changing gold prices. Furthermore, the massive uncertainties between the United States and the Taliban are poised to affect gold prices even more. Investors and traders are now wary given the deadline given by the American government for the return of its citizens even as suspicions of further attacks are rampant.
These factors have relatively resulted in gold prices changing rapidly as they are influenced. Amazingly, they also partly contributed to the bullish action of the price levels as the upward movement of prices was recorded at the climax of the Afghanistan crisis. However, experts foresee a struggle for gold bulls to break through the resistance level.
Gold Prices And Outlook
The prices of gold remain relegated around the resistance level just a little over $1,800. This performance is likely to remain the same for a while and might even be impacted upon by gold bears. For prices to soar higher again, the bulls would need to move past the 1,820 price level and attempt to reach $1,840 which was its highest for August. When this happens, then prices can climb up to a higher level of $1,900 which was reached also in March. However, in light of present events, this climb may not happen as expected.
Gold price vs USD price chart. Source: Tradingview.com
The performance of gold prices since the beginning of August has been satisfactory and traders are confident that the occurrence of any dip would not be disastrous. Analysts however expect timely falls even with the increase in prices and bull actions.