Gold Keeps Control Through Jackson Hole

There was a moment in Friday’s trading session for Gold wherein we said, “Oh no, here we again go, price losing control”. Here ’tis below (left arrow) in the sudden spate of nervousness leading into Federal Reserve Chair Yellen’s Wyoming remarks, wherein rather than talk rates, she assured us of the financial system’s safe state. From our view, Gold didn’t buy that a bit, and thus, as you can see, regained control. (When European Central Bank President Draghi later spoke well into the night by EuroTime, most traders there were into the weekend’s imbibing, albeit the Euro did press on to highs not seen since the start of 2015). Per the otherwise flat graphic across the session, Gold settled out the week at 1297:

A week ago upon Gold’s having regained 1300, we queried as to whether ‘twould again get stuck as is its wont ’round this level, or if instead ‘twould battle ahead up through the thicket of price resistance toward Base Camp 1377, from which the door really swings open for a much higher, less impeded run to 1600. For the present, we’ve our answer, Gold getting stuck to yet again settle in these Whiny 1290s for the third consecutive week. Blame it on the Dog Days of August? ‘Twas Gold’s narrowest trading week of the last 10, indeed the fourth such of the year-to-date. Here are the weekly bars:

Continuing to fly under the radar, indeed fall off of it, is the ever-descending Economic Barometer. ‘Twas quite a light week for incoming data, highlighted by slowing growth in July sales of both New and Existing Homes as well as a decline for that month’s Durable Orders. Recall about a week back Federal Open Market Committee Vice-Chairman William Dudley’s envisioning further rate hiking and balance sheet shrinking? “Yo Bill! Can ya ‘Hang Ten’ there for us, baby?”

Speaking of which, if you’ve been following the day-by-day stance of the precious metals’ baby blue dots that denote 21-day linear regression trend consistency, they continue to precariously hang about in the rarefied air up there as opposed to simply letting go to the downside. ‘Tis very unusual to see but a mild slide by the “Baby Blues” like this, rather than their resorting to the more sweeping moves of which we’re accustomed. True, ’tis a testament to the strength of the rallies for better than a month in both Gold on the left and Silver on the right. But should price not step up right quick, look for the dots to readily slip: