At the Jackson Hole symposium, Federal Reserve Chair Kevin Warsh delivered a hawkish address, emphasizing that the central bank remains committed to its 2% inflation target and will keep rate increases on the table if core inflation stays elevated. The hawkish shift pushed rate-hike expectations higher and triggered a >3% dip in spot gold down to $4,511/oz.
However, beneath the short-term price drop, systematic trend dynamics are signaling building upside momentum:
- Short-Term Trend Flipping Long: Short-term CTA signals are currently at +28% and projected to reach +69% within a week.
- Medium-Term Recovery: Medium-term trend signals are climbing out of negative territory -13%, heading toward +12%.
- The Key Breakout Level: The critical price level to watch is $4,841/oz.
A decisive push above $4,841 would trigger systematic short-covering across CTA funds, releasing fresh buying power and shifting long-term trend positioning higher.
Disclosure: The author holds a long position in $TRX stock at the time of writing