Gold Bulls Still In Control Ahead of Jackson Hole – Analyst
Heightened risk appetite in the marketplace put gold prices under pressure Tuesday, but one analyst says all the uncertainty should continue to support the metal.
“Regardless of the short-term losses, the yellow metal remains heavily supported by geopolitical risk and political drama in Washington,” noted Lukman Otunuga, market analysts for FXTM, in a report Tuesday.
The gold market saw mild profit-taking as markets await the Jackson Hole Economic Policy Symposium scheduled later this week. Both Federal Reserve Chair Janet Yellen and European Central Bank president Mario Draghi are set to speak at the event on Friday. December Comex gold futures last traded down 0.37% at $1,291.90 an ounce.
However, the London-based analyst remains optimistic, noting that gold bulls still have an edge.
“There is still a lingering air of caution ahead of the Jackson Hole conference later this week and this should empower gold bulls,” he said.
“From a technical standpoint, the yellow metal is bullish on the daily charts, as there have been consistently higher highs and higher lows.”
The bulls remain in control above $1,283 an ounce, Otunuga continued, adding that a break above $1,293 would open the metal’s path towards $1,300.