Gold prices slipped in Asian trading on Friday, weighed down by a stronger U.S. dollar as investors reduced bets on further interest rate cuts ahead of Federal Reserve Chair Jerome Powell’s highly anticipated Jackson Hole speech.
Broader metals also declined, pressured by the dollar’s strength, which was on track for solid weekly gains. Spot gold fell 0.3% to $3,328.37 per ounce, while gold futures dropped 0.3% to $3,371.15 by 00:54 ET (04:54 GMT).
Losses in gold were partially offset by safe-haven demand, fueled by fading hopes of a Russia-Ukraine peace agreement despite U.S. diplomatic efforts.
Gold on track for second weekly loss
Gold was down between 0.2% and 0.5% this week, heading for a second straight weekly decline. The drop followed reduced expectations for a September Fed rate cut, with minutes from the July meeting showing most policymakers favoring a wait-and-see approach.
CME FedWatch data showed a 73.1% probability of a 25-basis-point cut in September, down from 92.2% the prior week. Higher-for-longer interest rates continue to pressure gold and other non-yielding assets, as investors favor Treasuries over metals.
Metals retreat as dollar strengthens
Focus now turns to Powell’s Jackson Hole address, with traders seeking guidance on inflation trends, labor market signals, and the impact of President Donald Trump’s trade tariffs on Fed policy.
Spot platinum slipped 0.7% to $1,347.85/oz, while silver eased 0.2% to $38.07/oz, though both were set for mild weekly gains. Copper also weakened, with London benchmark futures down 0.2% to $9,724.10 a ton, and COMEX futures down 0.3% to $4.4420 a pound.
