Gold prices reached a near three-week low on Wednesday as the dollar strengthened, while investors looked ahead to the Federal Reserve’s Jackson Hole symposium later this week for insights into the future of monetary policy.
In Dubai, gold rates remained relatively stable, with 24-carat gold priced at AED402.00. The cost for 22-carat gold stands at AED372.00, while 21-carat gold is at AED356.75. Additionally, 18-carat gold is recorded at AED305.75.
Spot gold increased by 0.13 percent to $3,320.05 per ounce, after hitting its lowest level since August 1. U.S. gold futures for December delivery also rose by 0.13 percent to $3,362.70.
The U.S. dollar index climbed to its highest point in over a week, making gold less accessible for buyers using other currencies. Powell is scheduled to address the Kansas City Federal Reserve’s Jackson Hole symposium on Friday, and investors are keenly observing for any indications regarding the trajectory of monetary policy. Minutes from the Fed’s July meeting, expected later in the day, are anticipated to provide further clarity on the central bank’s policy stance.
Zelenskyy’s optimism on peace talks
Interest rate futures suggest two cuts of 25 basis points each may occur this year, with the first anticipated in September. Gold generally performs well in a low-interest-rate environment and during periods of increased uncertainty.
In related news, U.S. President Donald Trump ruled out deploying ground troops to Ukraine on Tuesday but indicated that air support could be part of a solution to end Russia’s war in that region. Ukrainian President Volodymyr Zelenskyy regarded the discussions in the White House as a “major step forward” towards resolving Europe’s deadliest conflict in 80 years, paving the way for a trilateral meeting involving Russian President Vladimir Putin and Trump.
Elsewhere, spot silver decreased by 0.4 percent to $37.23 per ounce, platinum rose by 0.3 percent to $1,310.06, and palladium fell by 1 percent to $1,103.95.
J.P. Morgan and Goldman Sachs predictions
Financial institutions have revised their gold price forecasts upwards in 2025, reflecting strength in the precious metal amid economic uncertainty. J.P. Morgan Research anticipates gold averaging $3,675 per ounce by the final quarter of 2025, with a rise toward $4,000 per ounce by mid-2026. Goldman Sachs recently raised its forecast to $3,700 by the end of this year, aligning with projections from UBS and Bank of America, who expect prices around $3,500 to $3,700. These forecasts factor in ongoing recession risks, trade tensions, and geopolitical instability as drivers supporting a sustained bullish outlook for gold.
Read more: Dubai 24-carat gold price today falls to AED402.25 as investors await Fed meeting
Rate cut expectations and market caution
The Federal Reserve’s Jackson Hole Economic Symposium, scheduled to convene August 21-23, 2025, remains pivotal for market direction. Analysts note a high probability (around 84 percent) of a 25 basis point rate cut in September, dependent on signals from Jerome Powell’s keynote speech. Market participants remain cautious, awaiting clarity on monetary policy amid mixed economic signals such as a 2.8 percent decline in U.S. building permits in July, which influence inflation and growth expectations. This environment maintains strong, if somewhat volatile, support for gold and other precious metals as safe-haven assets.
