-
USD tumbled after Powell’s speech
-
Stock markets at new record highs
-
Gold and silver gain on weaker USD
Friday was all about the long-awaited Jackson Hole and the Fed Chair’s speech - market were waiting for this event for weeks. Even before the Jackson Hole kicked-off, some Fed speakers delivered hawkish comments, which strengthened the USD and made the whole happening even more interesting. However, Powell’s remarks were rather dovish and eventually led to weaker USD. The Fed Chair did not provide concrete tapering date and ignored elevated inflation.
US stocks pushed higher after Powell’s speech, climbing to fresh all-time highs. European equity markets gained as well and finished the day higher. Apart from that, investors were focused on core PCE from the US for July - the Fed’s favourite inflation gauge. The reading was in-line with expectations (3.6% YoY) and had little impact on the market.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe situation on commodity markets is interesting as well and indicates a risk-on mood. Oil prices advance roughly 2%, ahead of OPEC+ meeting next week. Copper gains 1.5%. Gold and silver jumped on the weaker USD. Interestingly, UoM’s 5-year inflation expectations in August fell slightly compared to flash data, from 3.0% to 2.9%.
Gold prices spiked after Powell’s remarks as the US dollar tumbled. In fact, gold bulls managed to break above recent local peak near $1,809 an ounce. It is worth to notice that gold prices have been sitting above the 100-period EMA (H4 interval). Should the upward move on the gold market continue, the attention might soon shift towards the resistance area near $1,832 an ounce. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
