Gold prices fell in Asian trade on Thursday, pressured by rising uncertainty over U.S. interest rates after hawkish signals from the Federal Reserve’s July meeting minutes.
Broader metal prices also retreated as the U.S. dollar held recent gains. Investors are now focused on Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday.
Spot gold slipped 0.3% to $3,339.31 an ounce, while gold futures for October dropped 0.2% to $3,381.62 per ounce by 01:20 ET (05:20 GMT). The metal traded mostly rangebound this week as uncertainty around U.S. rates limited major moves.
Gold pressured by hawkish Fed minutes
The Fed minutes showed most policymakers supported a wait-and-see approach on rate cuts. While two members voted for a July cut, the majority favored holding rates steady. Inflationary risks from President Donald Trump’s trade tariffs remained the main concern.
Policymakers indicated they would prioritize keeping inflation low, even if it meant tolerating some labor market weakness. This stance may see the Fed overlook softer payroll data in the near term.
Traders trimmed expectations for a September rate cut after the release. Fed fund futures now show a 78.4% probability of a 25 basis point cut, down from nearly 100% earlier this month, according to CME FedWatch.
Higher-for-longer rates weigh on gold
Persistently high rates are negative for non-yielding assets like gold, as they raise the opportunity cost of holding them. Still, gold has held on to much of its 2025 gains, supported by safe-haven demand amid slowing global growth and geopolitical uncertainty.
Gold also found support from fading hopes of a Russia-Ukraine ceasefire, as peace talks showed little progress.
Other metals performance
Other precious metals saw muted trade. Spot platinum slipped 0.2% to $1,337.45 an ounce, while spot silver was flat at $37.91 an ounce.
In industrial metals, LME copper futures dropped 0.2% to $9,719.45 per ton, while COMEX copper futures eased 0.1% to $4.4287 per pound.
Markets eye Powell’s Jackson Hole address
Traders now await Powell’s Jackson Hole speech for fresh policy signals, especially with the Trump administration urging rate cuts.
Ahead of the event, investors are also watching key U.S. economic data due Thursday, including August PMI readings and initial jobless claims, both of which will offer more insight into the health of the U.S. economy.
