Gold Prices Hold Steady as Traders Await Jackson Hole
Gold prices moved little in Asian trade on Wednesday, stabilizing after recent losses as uncertainty over U.S. interest rates kept investors cautious ahead of the Jackson Hole central banking conference.
Dollar Gains Over Gold as Traders Await Fed Clues
Despite risk-off sentiment in global markets, demand for gold stayed muted. Wall Street and global equities posted steep losses this week, yet traders preferred the U.S. dollar over gold amid doubts about whether the Federal Reserve will cut rates in September.
- Spot gold edged up 0.1% to $3,319.14 an ounce
- Gold futures (October) rose 0.1% to $3,361.20 an ounce by 01:30 ET (05:30 GMT)
Gold also saw limited safe-haven buying from the Russia-Ukraine conflict, as hopes for a peace treaty faded.
Jackson Hole Speech Looms Large
Gold stayed on the defensive as traders looked ahead to Fed Chair Jerome Powell’s speech on Friday at the Jackson Hole Symposium. His comments are expected to provide fresh guidance on the Fed’s policy path.
Uncertainty has grown after last week’s stronger-than-expected producer inflation data, which highlighted concerns over the inflationary impact of Trump’s trade tariffs.
While markets still price in an 84% chance of a 25-basis-point rate cut in September, Powell has remained non-committal. His remarks this week could decide whether the Fed leans dovish or hawkish.
Dollar Strength Pressures Metals
The firm U.S. dollar weighed on broader metal markets Wednesday.
- Platinum rose 0.1% to $1,316.70/oz
- Silver dropped 0.6% to $37.18/oz
- LME copper futures held flat at $9,702.45/ton
- COMEX copper was steady at $4.4285/pound
Russia-Ukraine Talks Cast Geopolitical Shadow
Markets also tracked developments in the Russia-Ukraine war. On Monday, President Donald Trump pledged security guarantees to Kyiv after talks with Ukrainian and European leaders.
However, Moscow escalated tensions with new airstrikes, raising doubts about peace prospects. Trump admitted that Russian President Vladimir Putin may not be ready to strike a deal.
Trump has suggested direct talks between Putin and Ukrainian President Volodymyr Zelenskiy, potentially followed by a trilateral summit. But no firm timeline has been set.
