Gold prices showed little movement in Asian markets on Wednesday, holding steady after earlier losses as investors remained cautious ahead of the Jackson Hole central bank symposium. Heightened uncertainty over U.S. interest rates kept traders largely on the sidelines.
Even as global equity markets faced sharp declines this week, demand for gold was muted, with many traders favoring the U.S. dollar amid speculation over whether the Federal Reserve will cut rates in September.
Spot gold rose marginally by 0.1% to $3,319.14 per ounce, while October gold futures gained 0.1% to $3,361.20 an ounce by 01:30 ET (05:30 GMT). Safe-haven interest was limited, reflecting skepticism over an imminent resolution to the Russia-Ukraine conflict.
Eyes on Jackson Hole
Gold remained under pressure as anticipation built around Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium on Friday. Investors are looking for clues about the timing and extent of possible rate cuts.
Last week’s producer price inflation report added to the uncertainty, highlighting concerns over the inflationary impact of U.S. tariffs. Following the data, some traders reduced their bets on a September rate reduction, though CME FedWatch indicates an 84% chance of a 25 basis point cut next month.
Powell has remained cautious in his comments about future monetary easing, citing uncertainty from tariffs and inflation. Markets are bracing for his remarks, which could influence gold and currency markets.
The U.S. dollar strengthened Wednesday, putting downward pressure on precious metals. Spot platinum increased 0.1% to $1,316.70 per ounce, while silver fell 0.6% to $37.1845 per ounce. Industrial metals were mostly stable, with LME copper futures flat at $9,702.45 per ton and COMEX copper futures unchanged at $4.4285 per pound.
Geopolitical Tensions Keep Markets Alert
Investor focus also remains on U.S.-led attempts to mediate a peace settlement between Russia and Ukraine. President Trump pledged security assurances to Ukraine following a summit with European and Ukrainian leaders, but the specifics remain unclear.
Russia continued air strikes despite international calls for a ceasefire, leaving the likelihood of a near-term peace deal uncertain. Potential discussions between Putin and Ukrainian President Volodymyr Zelensky could open the door for trilateral negotiations, but the timing and scope remain vague.
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