Gold Price Soars to Six-Year High Ahead of September FOMC Meeting

The gold price has surged to a six-year high, reaching $4,383.35 on Tuesday, August 11, marking an increase of 9.71% from July 17 and still 18.90% below its record high of $5,405.00 set on January 29 (LBMA precious metal prices). This rise has been attributed to a low in short positioning, with managed-money gross shorts in COMEX gold hitting 9,043 contracts, representing 2.4% of open interest, the thinnest since April 28, 2020.

An analysis was run against 1,052 weekly reports, resulting in a +2.96% increase over thirteen weeks, but when checking the actual dates, the same four years were re-run with similar results (+2.74%). Three precedents all showed a decrease in the two-year yield, which is currently up 27 basis points.

The author of the analysis calls for a fix at $4,165 to $4,275 by the September 15-16 FOMC meeting within a range of $4,030 to $4,510. A weekly fix outside this range would settle whether gold will reach this target or not.