Business Standard

Gold range-bound as investors wait for Fed chair's speech at Jackson Hole

Spot gold rose 0.2% to $1,751.16 per ounce by 0854 GMT, trading in a $9 range. It advanced 0.7% in the previous session. U.S. gold futures rose 0.1% to $1,763.60.

Gold

Photo: Bloomberg

Reuters
By Arundhati Sarkar
(Reuters) - Gold traded in a narrow range on Wednesday as investors awaited more insight into the outlook for interest rates from U.S. Federal Reserve Chair Jerome Powell when he speaks at central bankers' symposium at Jackson Hole later this week.
Spot gold rose 0.2% to $1,751.16 per ounce by 0854 GMT, trading in a $9 range. It advanced 0.7% in the previous session.
U.S. gold futures rose 0.1% to $1,763.60.
"Gold is holding above $1,750 and is showing resilience, despite the strength of the dollar," said Carlo Alberto De Casa, external analyst for Kinesis Money.
"From a technical point of view, there is now an important support zone between $1,740 and $1,750."
Looking ahead to the Fed chair's speech on Friday, De Casa said investors want to hear Powell's opinion on inflation trends, and any dovish turn on the outlook for interest rates could lift bullion.
Ilya Spivak, a currency strategist at DailyFX, said bullion prices had made a correction after six days of decline, and investors were now looking for Powell to provide "some kind of a guidance, or framework about the Fed policy."
Minneapolis Fed President Neel Kashkari was the latest official to reiterate the U.S. Fed's focus on controlling inflation ahead of all else.
While gold is considered a hedge against inflation, higher interest rates are a disincentive to holding zero-yield bullion.
Keeping gold prices in check, the dollar also firmed near recent peak against its rivals, making gold less appealing for buyers holding other currencies. [USD/]
Aside from Powell, investors will also focus on a U.S. second quarter gross domestic product second estimate and July consumer spending data due later this week.
Spot silver fell 0.2% to $19.13 per ounce, while platinum rose 0.3% to $881.75.
Palladium gained 0.4% to $1,988.86.
 
(Reporting by Arundhati Sarkar and Brijesh Patel in Bengaluru; Editing by Simon Cameron-Moore)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Aug 24 2022 | 5:14 PM IST

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