Gold prices declined in the European market on Thursday, resuming losses that had briefly paused yesterday, once again approaching a three-week low under pressure from a stronger US dollar against a basket of global currencies.
Later today, the annual Jackson Hole Economic Symposium kicks off, where Federal Reserve Chair Jerome Powell is scheduled to speak tomorrow, Friday. His remarks are expected to provide strong clues regarding the path of monetary easing and interest rate cuts during the remainder of this year.
Price Overview
Gold prices today: Gold fell by 0.4% to $3,334.35 per ounce, from the opening level of $3,348.42, after hitting an intraday high of $3,352.13.
At Wednesday’s settlement, gold gained 1.0% in its first increase in three sessions, after earlier touching a three-week low at $3,311.58 per ounce.
US Dollar
The US Dollar Index rose 0.1% on Thursday, resuming gains that had briefly halted yesterday, reaching a two-week high of 98.44 points and reflecting strength in the greenback against a basket of major and minor currencies.
Federal Reserve Governor Lisa Cook reiterated her commitment to her post despite President Donald Trump’s calls for her resignation over alleged mortgage fraud.
Minutes from the Fed’s latest policy meeting revealed divisions over concerns regarding tariffs, inflation, and the labor market.
US Interest Rates
According to the CME FedWatch Tool: market pricing of a 25 basis-point rate cut in September remains steady at 81%, with a 19% probability assigned to rates staying unchanged.
For the October meeting, markets are pricing a 91% chance of a 25 basis-point cut, versus a 9% chance of no change.
To reassess these probabilities, investors are awaiting key US sector data due later today for August.
Jackson Hole
Central bankers from around the world will attend the symposium beginning later today, though market attention will remain focused on Powell’s speech tomorrow, as traders look for signals on the likelihood of a US rate cut in September.
Gold Outlook
Brian Lan, managing director at Singapore-based GoldSilver Central, said: “We don’t think gold prices will rise significantly, and we see them stabilizing for now.”
He added: “Even if rates are cut slightly, we may see a modest uptick in gold, with $3,400 as a possible level. Otherwise, prices may continue to stabilize or dip slightly, approaching $3,300.”
SPDR Gold Trust
Holdings in SPDR Gold Trust, the world’s largest gold-backed ETF, fell by 4 metric tons yesterday, marking a second consecutive daily decline. Total holdings dropped to 958.21 metric tons, the lowest since August 6.
