Jackson Hole Symposium Determines Gold's Future Direction
Gold prices moved steadily in trading on Thursday (August 21st), with spot gold weakening slightly by around 0.3% to a range of US$3,337–3,338 per ounce. Market participants held off on major moves ahead of Fed Chairman Jerome Powell's speech at the Jackson Hole symposium, which is believed to provide important guidance on the direction of US interest rates. Currently, the probability of a September interest rate cut remains high, at around 85%, but there is no clear consensus within the FOMC regarding how aggressive such a move will be. This situation has kept gold in a consolidation phase, with the potential for a rebound towards US$3,400 if dovish signals emerge, or a decline towards US$3,300 if Powell maintains a cautious stance.
In the medium term, the gold trend remains positive. Strong demand from central banks and inflows into gold ETFs are driving prices. Several major financial institutions are also growing optimistic, with Goldman Sachs raising its gold price target to US$3,700 by the end of 2025, potentially even reaching US$4,000 by mid-2026. UBS also predicts gold prices will reach US$3,600 by March 2026 and US$3,700 by September 2026.
Technically, gold is still moving sideways in neutral territory. The nearest support level is at US$3,325–3,330, while the nearest resistance is around US$3,346–3,351. The RSI indicator is at 49, indicating the market is still in a waiting phase, with neither bullish nor bearish dominance. However, the long-term trend remains bullish, with room for upside towards US$3,500 if buying momentum strengthens again.
Source: Newsmaker.id
