Gold had a slight pullback last night, trading in a relatively narrow range of $1493.60 - $1499.  It failed to hold the pennant up trendline at $1499 and slumped to support at $1493-4 (4 bottoms 8/14, 8/19, 8/20, and 8/22  lows).  Gold was pressured by a firmer US 10-year bond yield (1.611% -1.661%) and stronger global equities (NIKKEI +0.40%, SCI up 0.49%, European markets were up from 0.45% to 0.74%, and S&P futures were +0.4%).  A stronger US dollar was also a headwind for gold as the DX rose from 98.20 to 98.45, where resistance at 98.45-46 (double top, 8/2 and 8/20 highs) held. 

Ahead of the NY open, some dovish comments from the Fed’s Bullard (concern over inverted yield curve, lower rates will help hit inflation target, been below inflation target since 2012, prefers insurance against downturn) lifted S&P futures (2934).  The 10-year bond yield was tugged down to 1.637%, and the DX slipped to 98.38.  Gold came off its low, and edged up to $1496. 

At 8:00 AM, markets were shaken on news that China was imposing new tariffs of 5-10% on $75B of US goods, including autos.  S&P futures sank (2902), along with the 10-year bond yield (1.601%).  The DX slipped to 98.29, and gold broke through resistance at $1500 and $1504 (yesterday’s high) to reach $1507, where resistance in front of $1508 (double top - 8/20 and 8/21 highs) held.

At 10AM, Powell’s much awaited Jackson Hole address was mildly dovish (pointed out that the global growth outlook has been deteriorating, trade policy uncertainty playing a role in the global slowdown and in weak manufacturing and capital spending in the US, and that the Fed “will act as appropriate to sustain the expansion”).  US stocks rebounded (S&P +4 to 2927), the...

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