Gold: Pricing stays supported as Fed path questioned – TD Securities

FXStreet Insights Team FXStreet

TD Securities’ Ryan McKay and Bart Melek note that positioning in Gold remains resilient despite a more hawkish Jackson Hole speech from Fed Chair Warsh. While the recent rally is seen as premature given lingering inflation concerns and renewed hike pricing for 2027, they argue the broader backdrop has improved and do not foresee material downside as Dollar debasement and uncertain Fed hikes support precious metals.

Yellow metal holds firm post-Jackson Hole

"Fed Chair Warsh struck a more hawkish tone in his Jackson Hole speech as he acknowledged the inflation concerns."

"This has sapped some life from the precious metals complex as expected, but thus far pricing has remained well-supported."

"Hike pricing has increased to just over two hikes in 2027 again, and we have argued the recent rally in gold was too early due to these lingering inflation concerns."

"Moving forward, we do not anticipate material downside for the yellow metal as the landscape for precious metals has improved amid a renewed dollar debasement theme, while Fed hikes remain far from certain."

"Positioning in gold is holding firm in the aftermath of a more hawkish tone at Jackson Hole, while renewed tensions in the Middle East see CTAs turn buyers in crude oil."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.