Gold prices declined on Thursday but held steady above the $2,500 level as the U.S. dollar recovered ahead of the Federal Reserve Chief’s speech which could offer additional insights into the interest rate outlook.
In the UAE, gold prices declined by AED0.75 with 24-carat gold inching down to AED303 and 22-carat gold declining to AED280.5. Meanwhile, 21-carat gold reached AED271.5 and 18-carat gold hit AED232.75.
Globally, spot gold fell 0.45 percent to $2,501.64, as of 5:13 GMT, after hitting a new all-time high of $2,531.60 on Tuesday. Meanwhile, U.S. gold futures inched down 0.33 percent to $2,539.
U.S. dollar breaks four-day losing streak
Gold prices dipped as the U.S. dollar index broke its four-day losing streak, recording a 0.17 percent increase. U.S. Treasury bond yields also witnessed a modest increase. The dollar’s recovery came after the release of minutes from the Fed’s July meeting that showed officials were strongly inclined toward a rate cut next month.
Traders fully priced in an interest rate cut by the U.S. central bank at the September meeting, with a 62 percent chance of a 25 basis point cut, according to the CME FedWatch tool.
Investors now await the Jackson Hole Economic Symposium, which will start Thursday, and Fed Chair Jerome Powell’s speech on Friday. The market also awaits the release of initial jobless claims data, due at 12:30 GMT. Gold prices could receive another boost if the jobless data softens further after recent downward revisions to payroll figures.
U.S. labor market weaker
The U.S. Bureau of Labor Statistics published its preliminary annual benchmark review of employment data, revealing that employers added 818,000 fewer jobs than were reported during the year through March. This marks the largest downward revision since 2009 and shows that the labor market wasn’t as hot as initially expected. However, job growth was still historically strong. Economists and analysts say the revisions will likely put further pressure on the Fed to loosen its monetary policy.
Read: Oil prices weaken on U.S. labor data, demand outlook uncertain
Other precious metals
Amid the decline in gold prices from their record highs, the precious metals market remained mixed. Spot silver was down 0.67 percent to $29.43 while platinum dipped 0.18 percent to $961.92. Palladium, however, rose 0.13 percent to $952.59 while copper remained stable at $4.18.
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