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On this day — August 15, 2022

Monday — typically a high-volume trading day as markets digest weekend news. Asian gold imports often see Monday surges in major demand countries.

Day 227 of 365 · Q3 2022 · 62.2% through the year

August 2022 gold market: A brief bounce undone at Jackson Hole

Bearish

A mid-month bounce crushed by a hawkish Jackson Hole.

Gold bounced toward $1,800 in early August 2022 on hopes of a Fed slowdown, but the rally reversed hard after Chair Powell's hawkish Jackson Hole speech on August 26 reaffirmed the central bank's commitment to crushing inflation. The metal slid back toward $1,710 by month-end.

What drove gold in August 2022

  • early-month Fed-slowdown hopes
  • hawkish Powell Jackson Hole speech (Aug 26)
  • rising real yields
  • firm dollar
Themes#Fed policy#Jackson Hole#rising yields

Key events in August 2022

  1. Aug 26Powell's hawkish Jackson Hole speech reverses gold's bounce

What happened next

The renewed hawkishness drove gold to its 2022 low the following month.

For gold buyers

August was a bull trap — the early bounce evaporated the moment the Fed reasserted its resolve.