Last Week’s Trading Behaviour
Interest from retail participants was muted throughout last week as the wave of Tier 1 US Data continues to drive sentiment. Participation was modest but skewed towards higher prices in XAU. The volatile price action after the higher than expected CPI release on Friday resulted in even more reluctance from the retail sector to get involved, and this morning’s quiet open speaks to that.
Key Macro Catalyst This Week
The main event of the last 3 weeks is finally upon us as the FED makes its all important rate decision on Wednesday. After the sleuth of inflation related data all pointed to a FED that will be hiking, the market is now well positioned for this. A hike to 4% is almost fully priced and the catalyst for a further trend in XAU will be in the language given at press conference. After the FED Chairman’s speech at Jackson Hole, we expect the press conference and statement to signal more hikes to come.
Learn More about Victory Markets
How the Prop Insider Gold Sentiment Radar works
Victory Markets analyses aggregated trading behaviour to identify changes in positioning, risk appetite and crowd concentration. This report is provided for market research purposes and does not constitute investment advice.
