Gold Price Forecast: Appetite in XAU/SUD to dry up as expectations for rate cuts subside – TDS

Gold price is consolidating the downside. Re-pricing of Fed expectations are set to drive the market, with eyes on Jackson Hole Symposium scheduled next week, economists at TD Securities report. 

All eyes are on the Jackson Hole symposium 

“Chair Powell's remarks next week could be a key avenue for the Fed to push back against the notable easing in financial conditions sparked by his last remarks, which has seen markets price-in rate cuts immediately following the rate hiking cycle, and is likely to be inconsistent with the Fed's inflation mandate.”

“As market expectations for rate cuts subside, speculative appetite in precious metals should dry up even further.”