Gold’s recent selloff continued as precious metals traders are front-running Chair Powell's speech at the Jackson Hole symposium, economists at TD Securities report. 

Easing in market expectations for rate cuts to immediately follow the rate hiking cycle

“In line with our view that the Fed may use Jackson Hole to push back against the notable easing in financial conditions sparked by the Chair's last remarks, precious metals prices have started to ease. Further, this fits with the recent easing in market expectations for rate cuts to immediately follow the rate hiking cycle, which we expect will be the focus of Fedspeak in the coming weeks.”

“We are anticipating a capitulation event in gold driven by the unwind of a bloated position held by a few prop-shops and family offices.”