Gold +0.30% in ficke markets ahead of Jackson Hole

Gold is higher in fickle markets, +0.31% at the time of writing at $1,294.98, ahead of the Jackson Hole, reversing the losses suffered from risk-on markets in yesterday's session. The DXY is down -0.37% at the time of writing and US ten yrs are down -1.90%. Wall Street has taken profits ahead of the Jackson Hole and also down on the session so far.

While yesterday's risk appetite from investors was boosted by rumours that Trump's team was busy behind the scenes working on tax reform legislation, as fickle as current markets are, concerns still remain about President Donald Trump’s pro-business agenda and the possibility of a government shutdown in respect to the debt ceiling. 

Trump’s rally with supporters in Arizona yesterday when he said he’s ready to shut down the government to win funding for a border wall with Mexico weighed on risk especially when he warned of the possible termination of the North American Free Trade Agreement.

Trump bluffing a US government shutdown

"A government shutdown would most likely send the dollar spiraling back down to new lows for the year. Not only would not raising the debt ceiling risk a technical default on US debts, a shutdown could bring about further rating downgrades and erode investor belief that Trump can pass his tax cuts," explained Jasper Lawler, CMT, at the
London Capital Group.