Gold Holds in Tight Range Ahead of Powell’s Jackson Hole Speech
Gold prices moved within a narrow range on Thursday as investors awaited clearer signals on the U.S. Federal Reserve’s policy outlook ahead of the Jackson Hole Symposium in Wyoming, running from August 21 to 23.
By 03:58 GMT, spot gold slipped 0.2% to $3,339.97 per ounce, while U.S. gold futures for December delivery fell 0.2% to $3,382.40.
The dollar index edged 0.1% higher, increasing the cost of gold for holders of other currencies. Market participants are closely watching Fed Chair Jerome Powell’s upcoming speech on Friday for clues on whether the focus will shift toward supporting the labor market or maintaining pressure against inflation.
Gold prices are currently consolidating between support near $3,300 and resistance around $3,400, with limited movement expected until the Fed’s next policy direction becomes clearer.
Minutes from the Fed’s July meeting showed that two members favored a quarter-point rate cut to counter labor market weakness, though the majority supported holding rates steady. The Fed has kept its policy rate unchanged since December, while the CME FedWatch Tool reflects an 85% probability of a rate cut in September.
Gold typically benefits in environments of lower interest rates and heightened uncertainty. Geopolitical tensions also remain a factor, with Russia stressing that efforts to resolve security issues related to Ukraine without its involvement will not produce results.
Among other precious metals, silver slipped 0.1% to $37.85 per ounce, platinum fell 0.4% to $1,334.58, and palladium dropped 0.5% to $1,108.84.
