Gold holds steady as investors await Fed remarks at Jackson Hole
- Spot gold was down 0.2% at $3,339.97 per ounce.
Gold was little changed on Thursday as investors awaited cues on the Federal Reserve’s policy outlook ahead of the annual economic symposium at Jackson Hole, Wyoming, which starts later in the day.
Spot gold was down 0.2% at $3,339.97 per ounce, as of 0358 GMT.
US gold futures for December delivery also lost 0.2% to $3,382.40.
The US dollar index rose 0.1%, making greenback-back priced gold expensive for overseas buyers.
Fed Chair Jerome Powell is expected to deliver a keynote speech on Friday at the symposium, which will be held from August 21-23, with investors closely monitoring whether he backs measures to bolster the labor market or focuses on inflation risks.
“We don’t think gold prices are going to rise significantly and believe they are consolidating at the moment. Even if interest rates are cut slightly, we might see a slight uptick in gold prices, and…the $3,400 mark is possible. If not, then prices may continue to consolidate or possibly notch a little lower, closer to $3,300,” said Brian Lan, managing director, GoldSilver Central, Singapore.
Last month, two Fed officials - Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller - voted for a quarter-point rate cut to address job market weakness, but their stance lacked broader support.
The Fed has held rates steady since December, with CME’s FedWatch tool projecting an 85% chance of a quarter-point rate cut in September.
Gold typically performs well in a low-interest-rate environment and during times of heightened uncertainty.
U.S. President Donald Trump called on Fed Governor Lisa Cook to resign over alleged issues related to her mortgages in Michigan and Georgia, escalating his efforts to gain influence over the central bank.
Elsewhere, Russia said attempts to resolve security issues relating to Ukraine without Moscow’s participation were a “road to nowhere”.
Spot silver was down 0.1% to $37.85 per ounce, platinum fell 0.4% to $1,334.58 and palladium shed 0.5% to $1,108.84.
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