Gold holds steady as investors eye Fed’s Jackson Hole meeting
Minutes from the Fed’s July meeting, due on Wednesday, are also expected to provide further cues on monetary policy
[BENGALURU] Gold prices were little changed on Tuesday (Aug 19) as investors focused on the Federal Reserve’s Jackson Hole meeting later this week, which could provide insights into the US central bank’s trajectory of interest rate policy.
Spot gold was up 0.1 per cent at US$3,334.91 per ounce, as at 8.47 am. US gold futures for December delivery rose 0.1 per cent to US$3,379.40.
The Jackson Hole conference in Wyoming, set for Aug 21 to 23, where Fed chair Jerome Powell is expected to speak, could offer more clarity on the economic outlook and the central bank’s policy framework.
Investors currently assign an 84 per cent probability of a 25-basis-point rate cut at the Fed’s September meeting, according to the CME FedWatch tool.
Gold, a safe haven asset during times of geopolitical and economic uncertainty, tends to perform well in low-interest-rates environment.
Minutes from the Fed’s July meeting, due on Wednesday, are also expected to provide further cues on monetary policy.
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US President Donald Trump told Ukrainian President Volodymyr Zelensky on Monday that the United States would help guarantee Ukraine’s security in any deal to end Russia’s war there, though the extent of any assistance was not immediately clear.
Trump said that it was a “very good” meeting and he had begun arrangements for a meeting between Russian President Vladimir Putin and Zelensky after a subsequent call with Putin.
The Zelensky meeting came after an Alaska summit between Trump and Putin that failed to yield an agreement. Trump, after the Alaska talks with Putin, appeared more aligned with Moscow on seeking a full peace deal instead of a ceasefire first.
Elsewhere, spot silver rose 0.2 per cent to US$38.07 per ounce, platinum gained 0.3 per cent to US$1,327.30 and palladium was down 0.9 per cent to US$1,112.03. REUTERS
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