Gold Holds Firm Despite Hawkish Powell Comments at Jackson Hole
Gold prices have maintained their support despite a more hawkish tone from Federal Reserve Chair Jerome Powell at the Jackson Hole economic symposium. According to TD Securities' analysts Ryan McKay and Bart Melek, positioning in gold remains resilient despite the increased hike pricing for 2027.
The recent rally in gold is seen as premature due to lingering inflation concerns and renewed hike pricing for next year. However, McKay and Melek argue that the broader backdrop has improved, supporting precious metals. They attribute this to dollar debasement and uncertain Fed hikes.
The analysts note that despite the more hawkish tone from Powell, gold prices have remained well-supported. Hike pricing has increased to just over two hikes in 2027 again, but McKay and Melek do not foresee material downside for the yellow metal.