Date: August 24
Gold prices are maintaining their position close to two-week highs as the U.S. dollar weakens and Treasury yields retreat. This trend is attributed to investors eagerly anticipating signals about interest rates that the U.S. Federal Reserve could provide during its annual Jackson Hole meeting.
Here are the key points from the report:
As of 0124 GMT, spot gold increased by 0.2% to reach $1,917.50 per ounce, which is near its highest level since August 11. Meanwhile, U.S. gold futures remained relatively stable at $1,945.80.
The U.S. Federal Reserve’s annual symposium in Jackson Hole, Wyoming, scheduled from August 24 to 26, has turned the spotlight on Chair Jerome Powell’s speech, particularly in terms of interest rate implications.
The U.S. dollar has experienced a notable pullback against Asian currencies following softer-than-expected global economic data. This data has introduced uncertainty into the interest rate outlook and has subsequently led to a decrease in U.S. yields.
In August, U.S. business activity approached stagnation, with growth reaching its lowest point since February. The contraction in demand for new business in the expansive services sector has contributed to this slowdown.
The interest rate on the most popular U.S. home loan surged to its highest level since December 2000, according to a recent survey.
Traders have been increasingly speculating that the European Central Bank will pause its rate hikes in September. This anticipation stems from significant contractions in business activity, which indicate more substantial economic challenges.
The British economy is experiencing a slowdown, and there are concerns about the possibility of a recession due to the impact of consecutive rate increases by the Bank of England aimed at combating high inflation.
Several of Mali’s major gold producers have expressed concerns about a new law that could allow the military-led government to increase its ownership of mines. They believe this law should not apply to existing operations and that it could deter future investment.
In other metals, spot silver fell by 0.2% to $24.27 per ounce, platinum eased by 0.1% to $928.77, and palladium rose by 0.1% to $1,275.59.
The market is closely watching developments in the Jackson Hole meeting and the potential signals they might provide regarding the future path of interest rates.
