Gold slipped on Friday due to a firmer dollar, with markets awaiting U.S. Federal Reserve Chair Jerome Powell’s speech at the annual Jackson Hole symposium for more insight on the Fed’s monetary policy path.
Spot gold was down 0.4% at $3,326.35 per ounce, while U.S. gold futures for December delivery were 0.4% lower at $3,368.80.
One expert said the moderately stronger U.S. currency was playing an important role in gold’s current pullback. A firmer dollar makes gold more expensive for overseas buyers.
Futures markets indicate a 71% chance of a quarter-point rate cut next month, down from above 90% a week earlier. Non-yielding bullion tends to do well in a low-interest- rate environment.
Fed officials on Thursday appeared lukewarm to the idea of a rate cut next month as investors geared up for Powell’s speech, due at 2 p.m. EDT on Friday.
The challenge for Fed policymakers is that even though there are signs of labour market weakening, inflation remains above the central bank’s 2% target and could go higher due to the Trump administration’s aggressive tariff hikes.
Recent labour data showed U.S. jobless claims rose last week by the most in nearly three months, while unemployment claims the previous week hit a near four-year high.
