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    JM Bullion Weekly Market Preview (8/22/16)

    Market Overview: Gold and silver are both under some selling pressure today as the dollar index gains ground and the crude oil market declines. Light summer trading volumes remain a key theme for this week, and investors are looking forward to the Fed’s annual symposium to be held this week in Jackson Hole, Wyoming. With the lighter summer trading volumes comes the risk of added volatility, and much of the selling being seen in gold and silver today could be the result of sell stops being triggered.

    Key Data Points: There are now key economic releases set for today, however, investors will get more data to chew on throughout the week. Investors will get the latest readings on New Home Sales, Richmond Fed Manufacturing, MBA Mortgage Applications, PMI Manufacturing Index Flash, Existing Home Sales, Durable Goods Orders, Weekly Jobless Claims, GDP, Consumer Sentiment and more.

    While all of these key data points could potentially impact markets, the highlight of this week will be commentary from Fed Chairwoman Janet Yellen at the symposium in Jackson Hole, Wyoming. Investors will be looking for any further clues from the Chairwoman about the timing of the next rate hike, which some believe could come as early as early as September. While a hike next month may seem premature to some, a December hike seems like a stronger possibility if the data stream doesn’t bring any major surprises.

    Outside Markets: Stocks are moving modestly lower today as a drop in crude oil prices fuels some selling. Crude oil has been on a major run higher on speculation of an output freeze, and some profit taking should come as no surprise at this point.

    The dollar index is slightly higher to begin the new trading week, but remains in a defensive posture. A more dovish sounding Fed could potentially drive further selling in the greenback, while a more hawkish tone could potentially set the stage for a dollar rally.

    The Big Picture: With light summer volumes and many investors on vacation, the next two weeks have the potential to be very quiet but could also see periods of heightened volatility. For now, investors are likely to remain largely focused on the Fed and the timing of the next interest rate hike. That being said, it is also possible that a December or even September rate hike has already been discounted by the gold market, and more buying could potentially be seen even if the central bank does tighten this year. Gold has held up well despite the possibility of a rate hike and stronger equities, but will have to get some more upside momentum going sooner rather than later to avoid sliding further.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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