Gold slips as dollar firms, spotlight on Powell's Jackson Hole remarks
FILE PHOTO: Gold bangles are displayed at a jewellery store in Mumbai, India, March 20, 2025. REUTERS/Francis Mascarenhas/File Photo
Gold slipped on Friday due to a firmer dollar, with markets awaiting U.S. Federal Reserve Chair Jerome Powell's speech at the annual Jackson Hole symposium for more insight on the Fed's monetary policy path.
Spot gold was down 0.4 per cent at $3,326.35 per ounce by 0817 GMT, while U.S. gold futures for December delivery were 0.4 per cent lower at $3,368.80.
UBS analyst Giovanni Staunovo said the moderately stronger U.S. currency was playing an important role in gold's current pullback. A firmer dollar makes gold more expensive for overseas buyers.
The dollar index rose to a near two-week high as investors pared back expectations for a Fed rate cut in September.
Futures markets indicate a 71 per cent chance of a quarter-point rate cut next month, according to CME's FedWatch tool, down from above 90 per cent a week earlier. Non-yielding bullion tends to do well in a low interest rate environment.
Fed officials on Thursday appeared lukewarm to the idea of a rate cut next month as investors geared up for Powell's speech, due at 1400 GMT on Friday.
Their comments point to the U.S. central bank's next meeting "being an intense one, with some favouring large cuts, while others (favour) no move at all", Staunovo said.
The challenge for Fed policymakers is that even though there are signs of labour market weakening, inflation remains above the central bank's 2 per cent target and could go higher due to the Trump administration's aggressive tariff hikes.
Recent labour data showed U.S. jobless claims rose last week by the most in nearly three months, while unemployment claims the previous week hit a near four-year high.
Elsewhere, spot silver was down 0.4 per cent at $38.03 per ounce, platinum fell 0.6 per cent to $1,343.80, and palladium rose 0.2 per cent to $1,112.85.
(Reporting Ishaan Arora in Bengaluru; Editing by Jan Harvey)
