NEW YORK: Gold eked out small gains on Thursday as the dollar backed off from recent peaks, while caution in the run up to the Jackson Hole symposium capped the rise as investors awaited cues on monetary policy.
Spot gold rose 0.2% to $1,754.43 per ounce by 10:00 ET (1400 GMT), after earlier hitting its highest since Aug. 18. US gold futures rose 0.4% to $1,767.70.
Focus will be on US Federal Reserve Chair Jerome Powell’s speech at the central banks’ conference in Wyoming on Friday, for hints on the central bank’s interest rate hike strategy going forward.
“Gold is just seeing a corrective bounce from recent selling pressure. The dollar has backed off from its highs and there is some positioning ahead of Powell’s speech,” said Jim Wyckoff, senior analyst at Kitco Metals.
“In the near term, gold charts are still bearish. But in the longer-term, there is still upside potential for gold as there will be some safe-haven demand any time the economy is wobbly.”
The dollar index fell 0.1%, making gold cheaper for overseas buyers.
Gold is considered a safe investment amid economic turbulence. However, interest rate hikes to tame runaway inflation increase the opportunity cost of holding the bullion.
Investors also took stock of data showing the US economy contracted at a moderate pace than initially thought in the second quarter, easing fears of a recession.
Meanwhile, Fed’s Esther George said it was too soon to predict how much the US central bank would raise interest rates next month, with key reports on inflation and the labor market still to come.
In the physical market, top consumer China’s net gold imports via Hong Kong hit a nine-month high in July.
Elsewhere, spot silver fell 0.3% to $19.11 per ounce, platinum added 0.4% to $880.17. Palladium rose 2.8% to $2,091.37.
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