Two trades to watch: Gold, oil

Gold advances ahead of Powell's speech. WTI crude oil set for almost 10% gains this week - Baker Hughes rig count & Powell's impact on the USD in focus.

Gold 4

Gold advances ahead of Fed Powell’s speech 

Gold is pushing higher on Friday after a choppy session on Thursday saw the precious metal settle almost flat on the day. 

Whilst geopolitical tensions in Afghanistan are underpinning the precious metal, hawkish commentary from Fed speakers yesterday hit demand for non-yielding gold. 

Today Gold is pushing higher ahead of Fed Chair Jerome Powell’s speech at the second day of the Jackson Hole event. 

Investors will be looking for clues over the timing of the Fed tapering bond purchases, although bets have been eased amid rising covid cases. 

While PCE data ahead of the speech could attract some attention, Powell’s speech will set the tone in gold for the coming days.  

Any clues that tapering is imminent could send gold prices lower. 

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