Gold has been on an explosive run throughout August, with the precious metal notching up a third consecutive week of gains. Gold prices surged back above the key $1800 an ounce mark on Tuesday after briefly dipping below $1680 an ounce earlier this month.
Looking ahead to this week, the biggest market-moving event that traders will be closely monitoring is the Fed’s annual Jackson Hole Economic Policy Symposium.
Traders expect Fed policymakers could use this event as a platform to announce plans around the highly-anticipated wind down of their massive quantitative program as well as interest rate hikes.
However, there is huge potential that the Fed could surprise the markets by making a U-turn on their decision to tighten monetary policy too quickly. The rapidly spreading COVID variant now has many traders thinking the Fed will have to wait longer to reel in its easy-money policies to avoid any negative repercussions on the U.S economy. This ultimately means any new information will likely open the door for fresh volatility ahead.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: