Gold prices slipped in Thursday’s Asian session, pressured by hawkish signals from the Federal Reserve’s July meeting minutes, which reinforced uncertainty over the timing of U.S. interest rate cuts. Broader metal markets also pulled back, as the dollar maintained its recent strength and investors turned their attention to Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium on Friday.
Spot gold fell 0.3% to $3,339.31 an ounce, while October gold futures dropped 0.2% to $3,381.62/oz by 01:20 ET (05:20 GMT). Trading this week has been subdued, reflecting caution ahead of potential policy shifts.
Fed minutes temper expectations for rate cuts
The Fed’s July meeting minutes emphasized a measured approach, signaling that most policymakers are not yet ready to reduce rates despite some support for cuts from a minority of members. Concerns over inflation, partly driven by U.S. trade tariffs, remain central to their deliberations.
Officials appeared to prioritize keeping inflation under control rather than risking a slowdown in employment, suggesting that recent soft payroll data might not be enough to prompt immediate action. Following the minutes, market-implied probabilities of a September rate cut fell to 78.4%, down sharply from nearly 100% earlier in August, according to CME FedWatch.
Higher interest rates for a longer period generally weigh on non-yielding assets like gold, as the opportunity cost rises. Still, gold has preserved much of its gains for 2025, supported by safe-haven demand amid slowing growth and geopolitical uncertainty, including skepticism about the U.S. negotiating a near-term Russia-Ukraine ceasefire.
Other metals show muted moves
Precious metals remained mostly steady. Spot platinum declined 0.2% to $1,337.45/oz, while silver held at $37.91/oz. Industrial metals also experienced modest losses, with London Metal Exchange copper futures down 0.2% at $9,719.45 per ton and COMEX copper futures falling 0.1% to $4.4287 per pound.
Focus shifts to Jackson Hole and U.S. economic data
Investors are now awaiting Powell’s Jackson Hole address for further insight into Fed policy, especially amid calls from the Trump administration for rate reductions. Ahead of the speech, U.S. economic data, including August purchasing managers index readings and initial jobless claims, will provide additional clues on the labor market and overall economic momentum.
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