Gold Hits Three-Week Low as Dollar Strengthens Ahead of Powell’s Jackson Hole Speech
Gold prices slipped to their lowest level in nearly three weeks on Wednesday, pressured by a stronger U.S. dollar and cautious sentiment ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later this week.
Spot gold eased 0.1% to $3,313.51 per ounce , after touching its weakest level since August 1. U.S. gold futures for December delivery also dipped 0.1% to $3,355.50, according to Reuters.
Kelvin Wong, senior market analyst at OANDA, noted that the dollar’s rise and improved risk appetite on the back of recent geopolitical developments have weighed on bullion. Markets are now awaiting Powell’s remarks in Kansas City on Friday for clues on the future trajectory of U.S. monetary policy.
The U.S. dollar index climbed to its highest in more than a week, making gold more expensive for holders of other currencies. Traders also await the release of the Fed’s July meeting minutes later today, which could provide further insights into the central bank’s stance.
Meanwhile, geopolitical tensions remained in focus. U.S. President Donald Trump ruled out sending ground troops to Ukraine but signaled that air support could be part of a potential peace deal. Ukrainian President Volodymyr Zelensky hailed his White House talks as “a major step forward” toward ending the war and potentially arranging a trilateral meeting with Putin and Trump.
Among other precious metals, silver slipped 0.3% to $37.26 per ounce, platinum rose 0.2% to $1,308.90, while palladium dropped 0.7% to $1,106.83.
