Gold prices slipped on Thursday as investors awaited signals on the Federal Reserve’s interest rate outlook ahead of the annual Jackson Hole economic symposium starting later in the day.
In Dubai, gold rates declined, with 24-carat gold losing AED1 to AED402.25, and 22-carat gold losing AED1.25 to AED372.25. Meanwhile, 21-carat gold declined AED0.75 to AED357, and 18-carat gold fell AED1 to AED306.
Globally, spot gold slipped 0.15 percent to $3,340.68 as of 4:34 GMT. Meanwhile, U.S. gold futures for December delivery dipped 0.19 percent to $3,382.10.
The U.S. dollar index gained 0.06 percent to 98.28, making dollar-priced gold more expensive for overseas buyers.
Market awaits Powell’s comments
Fed Chair Jerome Powell is set to deliver a keynote address on Friday at the August 21–23 symposium, with investors watching closely to see whether he emphasizes support for the labor market or prioritizes inflation risks.
Analysts noted that gold prices are unlikely to rise significantly and believe they are currently consolidating. Even if interest rates are cut slightly, gold prices might see a slight uptick to the $3,400 mark. If not, prices may continue to consolidate or possibly trade closer to $3,300.
Last month, Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller voted for a quarter-point rate cut to support a weakening job market, but their proposal did not gain wider backing. The Fed has kept rates unchanged since December 2024, with CME’s FedWatch tool assigning an 82.4 percent probability of a quarter-point cut in September.
Gold prices generally benefit from low interest rates and periods of heightened uncertainty.
Minutes from the July FOMC meeting, released on Wednesday, showed that nearly all officials supported keeping rates unchanged, with a majority viewing inflation risks as tilted to the upside. Policymakers also highlighted emerging threats to the economy that warrant monitoring, while largely agreeing that their current policy stance remains appropriate.
Signs of persistent price pressures are prompting investors to discount the likelihood of aggressive rate cuts, helping the U.S. dollar hold near its highest level in over a week and limiting gold’s ability to build on the previous day’s recovery from a three-week low.
Read: Crude oil prices rise to $67.09 as large U.S. inventory drop signals strong demand
Geopolitical risks persist
U.S. President Donald Trump urged Fed Governor Lisa Cook to resign over her alleged mortgage issues in Michigan and Georgia, intensifying his push to influence the central bank.
Russian Foreign Minister Sergey Lavrov warned on Wednesday that attempting to resolve security issues relating to Ukraine without the participation of Moscow is a “road to nowhere”. Lavrov also accused European leaders of making clumsy attempts to change Trump’s position on Ukraine.
Traders are now awaiting the release of flash PMIs for fresh insights into global economic health, which could shape broader risk sentiment and influence commodity markets. The U.S. weekly initial jobless claims and the Philly Fed Manufacturing Index may also impact the dollar and create short-term trading opportunities.
However, attention will remain on Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, where investors will seek guidance on the central bank’s policy stance and potential rate-cut path—factors expected to drive the next directional moves for both the U.S. dollar and gold prices.
