This week on Thursday Federal Reserve’s Jerome Powell will be speaking at the Jackson Hole Symposium. It is going to be a key speech for the direction of the dollar this week and therefore gold’s price.

This event is a key event as it will be looking at the US monetary policy ahead and its likely course over the next 10 years. Here are the key things to be looking for and why.

  1. Yield Curve Control. The USD strengthened last week after the last Federal Reserve minutes showed that the Fed does not like the idea of Yield Curve control. This is what allowed the USD to rally higher. So, if there are any signs of backtracking on this from Powell at the Jackson Hole Symposium then expect the USD to weaken and gold to move higher.
  2. Average inflation target. This is where the Fed says we will allow inflation to move higher in before thinking about moving interest rates higher. If Powell mentions a move towards this approach expect the USD to weaken and gold to move higher.
  3. If Powell takes a look at the stock market that has moved higher and says ‘job done for now’ then we can expect more USD strength to flow into the market.

So, there you have it. The three key things to watch out of the symposium for this week. Technically price has been coiling up on the gold chart, so watch for a break on these key levels.