2025-08-22 Sing Pao's Column《真金白銀》(English translation) Pressure on the Fed Lifts Gold Prices

Pressure on the Fed Lifts Gold Prices

President Donald Trump has increased political pressure on the Federal Reserve, calling for Fed Governor Lisa Cook to resign amid a mortgage fraud investigation. Markets interpreted this as a potential threat to the Fed’s independence, which helped push gold prices toward the USD 3,350 mark.

Meanwhile, the latest FOMC meeting minutes showed that despite a slowdown in economic growth during the first half of the year, policymakers opted to keep the federal funds rate unchanged at 4.25% to 4.50%. Market attention now turns to the Jackson Hole Symposium on Friday, where Fed Chair Jerome Powell is expected to deliver a keynote speech outlining both short-term policy direction and long-term projections.

Following the minutes, the U.S. Dollar Index remained soft around the 98.00 level, while Treasury yields continued to decline—further supporting the gold market.

Gold Technical Outlook

On the daily chart, gold remains capped by the 20-day and 50-day Simple Moving Averages (SMA), both hovering in the USD 3,348 to 3,352 range. A decisive break above this level would allow for a potential retest of the recent high at USD 3,375.

The 14-day Relative Strength Index (RSI) currently sits at around 43.5, indicating weakening momentum and downside bias. If gold breaks below the 100-day SMA at USD 3,318, it may accelerate toward the July 30 low of USD 3,268 and possibly test the psychological USD 3,250 level.

Silver Outlook

Silver has bounced from a two-week low and is trading within a symmetrical triangle pattern on the 4-hour chart. Strong buying pressure near USD 37.00 has lifted prices back toward the 100-hour SMA at approximately USD 37.75—now acting as near-term resistance.

A breakout above the psychological USD 38.20 level could lead to a test of the August 14 high at USD 38.74. On the flip side, failure to hold USD 37.75 could keep silver confined within the triangle, with USD 37.00 remaining a key support.

Cryptocurrency Market

Cryptos weakened this week alongside a broader Nasdaq pullback. Bitcoin (BTC) dropped below USD 113,000, and Ethereum (ETH) fell below its 10-day moving average at around USD 4,300. Liquidations in the derivatives market reached USD 450 million in a single day, reflecting a sharp shift in sentiment.

Both BTC and ETH spot ETFs in the U.S. also recorded two straight days of net outflows, further highlighting risk aversion. Nonetheless, from a technical standpoint, BTC and ETH remain within their broader uptrend channels. Key BTC support is seen at USD 98,000, while the USD 123,000 resistance has failed twice, indicating more time may be needed for consolidation.

ETH, having broken out of its 2022–2024 consolidation range, still shows upward momentum. After clearing the USD 4,000 mark, the next target lies near USD 4,700. With ongoing institutional interest and confidence in Ethereum's future, ETH may continue to close the market cap gap with BTC.

Disclaimer:

This column is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell financial products. Investing involves risk. Readers are advised to assess their personal financial situation carefully and consult independent professional advice before making any investment decisions.