ECB hawks and doves clash, gold price fluctuates within a range
On Tuesday, August 29, the international spot gold price showed a steady upward trend, with gold prices slowly rising within the range of 1920-1930. Intraday, the focus will be on the resistance level of 1930. Intense Debate Within the European Central Bank Last week, the Jackson Hole Economic Symposium was held. At the meeting, Federal Reserve Chairman Powell made hawkish remarks, and European Central Bank President Lagarde also maintained a hawkish tone. On Friday, Lagarde stated that the European Central Bank will set interest rates as high as necessary and maintain that level for as long as needed to bring inflation back to its target. Inflation must fall promptly and durably. The European Central Bank will rely on data and make decisions on a meeting-by-meeting basis. There is also intense debate within the European Central Bank. Robert Holzmann, a member of the European Central Bank's Governing Council and Governor of the Austrian National Bank, said that the European Central Bank has not yet defeated inflation and that another interest rate hike may be needed in September unless something unexpected happens. Holzmann acknowledged that economic performance is not as good as hoped, but at the same time, the extent of the economic slowdown is not yet severe enough to warrant discussion of a recession. The European economy is not at risk of recession; it faces stagnation. However, Mario Centeno, Governor of the Bank of Portugal, said that the emerging downside risks are worth watching. Gold is currently maintaining a narrow range in the daily chart. The price is currently under pressure around 1922-1923. However, the strength and duration of the pullback after consecutive touches are not significant, so attention should be paid to the possibility of a secondary high-level rally. On the 4-hour chart, after continuous fluctuations, the technical pattern has begun to gradually repair, and the K-line has begun to stand above the short-term moving average. The short-term trend is relatively strong. In the short-term trend, it is starting to weaken and may still have some adjustment space.
Time:
2023-08-29 14:45
On Tuesday, August 29, the international spot gold price showed a steady upward trend, with gold prices slowly rising within the range of 1920-1930. Intraday, the focus will be on the resistance level of 1930.
Intense debate between hawks and doves within the European Central Bank
Last week, the Jackson Hole Economic Symposium was held. At the meeting, Federal Reserve Chairman Powell delivered hawkish remarks, and European Central Bank President Lagarde also maintained a hawkish tone. Last Friday, Lagarde stated that the European Central Bank will set interest rates as high as necessary and maintain that level for as long as needed to bring inflation back to its target. Inflation must fall promptly and durably. The European Central Bank will rely on data and make decisions on a meeting-by-meeting basis.
There is also intense debate within the European Central Bank. Robert Holzmann, a member of the European Central Bank's Governing Council and Governor of the Austrian National Bank, said that the European Central Bank has not yet defeated inflation and that another interest rate hike may be needed in September unless something unexpected happens.
Holzmann acknowledged that economic performance is not as hopeful as expected, but at the same time, the extent of the economic slowdown is not yet serious enough to warrant discussion of a recession. The European economy is not at risk of recession; it faces stagnation. However, Mario Centeno, Governor of the Bank of Portugal, said that the emerging downside risks are worth watching.
Gold is currently maintaining a narrow range in the daily chart. The price is currently under pressure around 1922-1923. However, the strength and duration of the retracement after consecutive touches are not significant, so attention should be paid to the possibility of a secondary high-level surge. On the 4-hour chart, after continuous fluctuations, the technical pattern is gradually being repaired, and the K-line is beginning to stand above the short-term moving average. The short-term trend is relatively strong. In the short-term trend, it is starting to weaken and may still have some room for adjustment.
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