LONDON: Gold prices inched lower on Wednesday to their lowest level in nearly three weeks as the dollar strengthened, while investors awaited the Federal Reserve’s Jackson Hole symposium later this week for clues on the path for monetary policy.
FUNDAMENTALS
Spot gold was down 0.1 per cent at US$3,312.79 per ounce, as of 0035 GMT, after reaching its lowest level since August 1.
US gold futures for December delivery fell 0.1 per cent to US$3,355.20.
The US dollar index climbed to its highest level in more than a week, making gold less affordable for buyers using other currencies.
Fed Chair Jerome Powell’s speech at the Jackson Hole symposium through August 21–23 is the main focus, with investors watching for any pushback against market pricing of a rate cut next month.
Minutes of the Fed’s July meeting, due later in the day, are anticipated to offer further insights into the central bank’s policy stance.
Interest rate futures point to two rate cuts of 25 basis points each this year, with the first one expected in September.
Gold typically performs well in a low-interest-rate environment and amid heightened uncertainties.
US President Donald Trump ruled out deploying ground troops to Ukraine on Tuesday but suggested air support could be part of a deal to end Russia’s war in the region.
Ukrainian President Volodymyr Zelenskiy hailed the White House talks as a “major step forward” towards ending Europe’s deadliest conflict in 80 years and setting up a trilateral meeting with Russian President Vladimir Putin and Trump.
Elsewhere, spot silver held steady at US$37.35 per ounce, platinum gained 0.3 per cent to US$1,309.35 and palladium was down 0.4 per cent to US$1,110.50.
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