Wall Street's main indexes have been hurt this month by fears of potentially higher corporate tax rates denting earnings and have shrugged off signs inflation might have peaked
"With weak US job data and inflation increasing at a slower pace, Fed is not expected to hint on taper plans in the upcoming meeting, says an analyst
US Federal Reserve will probably hint at its meeting next week that it is moving toward announcing a reduction in monthly asset purchases in November, according to a Bloomberg survey of economists.
The survey of 52 economists also predicted the US central bank would hold interest rates near zero through 2022 before delivering two quarter-point increases by the end of the following year
World shares fell on Friday, pressured by concerns over China's markets, the potential for a US corporate tax hike and an update on the US Federal Reserve's tapering strategy next week
Bullion is viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. The Fed's tapering could tackle both those conditions, diminishing gold's appeal.
Gold continues to remain a buy on dips because central banks are in no hurry to raise interest rates
The ECB did so by slowing the pace of its Pandemic Emergency Purchase Programme (PEPP), which has kept borrowing costs low as governments took on unprecedented amounts of debt
Wall Street is widely expecting that Powell, who was nominated for the role by President Donald Trump in 2017, will be renominated by President Joe Biden for another four-year stint.
By 1100 GMT, the MSCI world equity index was flat after hitting a new record high in Asian hours and following seven consecutive days of gains to record highs.
Progressive Democrats want the Fed to take on a more expansive role in the economy, by beefing up efforts to bolster employment, heading off climate risk and addressing inequality
Spot gold rose 0.1% to $1,827.82 per ounce by 0646 GMT. In the previous session, prices hit their highest since June 16 at $1,833.80.
Saion Mukherjee says the market is already factoring in earnings recovery from the June 2021 quarter
Fed policymakers will also release their summary of economic projections at the September meeting, which Lockhart said they may want to get "out of the way" before giving a taper schedule.
Both indices added nearly 9 per cent each in August, their best monthly showing since November
Spot gold was little changed at $1,814.58 per ounce by 0646 GMT, while U.S. gold futures traded flat at $1,816.50.
Fixed-income securities issued by South Africa, Turkey, Indonesia and India posted the biggest gains among 46 sovereign markets, returning at least 1.2% last month, excluding currency fluctuations
Markets continue to run ahead of fundamentals
India will not be impacted by the US Federal Reserve's move to tighten liquidity expected later this year, as India's macro-economic fundamentals are strong, CEA K V Subramanian said
"The Fed thinks it has time" to slow-walk the tightening process, especially given longer-term disinflationary forces like aging, automation and globalization, Raghuram Rajan said in an interview