Warsh Speech and Interest Rate Hikes: Gold Price Holds Steady at $4,599
Gold prices have remained relatively flat for two consecutive days as investors await Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole Symposium. The current price of gold is around $4,599, holding above the 200-day Simple Moving Average (SMA) at $4,525. This suggests a bullish bias in the market.
The rejection from three-month highs near $4,700 earlier this week has been contained at a previous resistance area just below $4,600. Market volatility remains subdued on Friday as investors focus on Warsh's speech for hints about the central bank's near-term policy plans to tame price pressures.
Calls for interest rate hikes have been made by several Federal Reserve board members in recent days. Kansas Fed President Jeffrey Schmidt stated that inflation is 'still sticky and we've got to continue to find ways to break through', while Cleveland Fed President Beth Hammack reiterated that it is 'time to act' to bring inflation back to target.
The technical analysis indicates that bulls remain in charge as long as the price holds above the 200-day SMA. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also support a bullish view, with the RSI at 66.48 and the MACD holding within positive territory.