Gold holds steady as investors focus on Jackson Hole symposium
GOLD held steady on Wednesday (Aug 24), with gains checked by an uptick in the US dollar, as market participants looked forward to a speech from Federal Reserve chair Jerome Powell later this week.
Spot gold was little changed at US$1,746.60 per ounce, as of 1.26 am GMT, after rising 0.7 per cent in the previous session.
US gold futures eased 0.2 per cent to US$1,758.20.
The dollar rose 0.2 per cent against its rivals, making gold more expensive for buyers holding other currencies.
Benchmark US 10-year Treasury yields were hovering near a more than 1-month high hit in the previous session.
Focus turns to Powell’s speech at the annual global central banking conference in Jackson Hole, Wyoming on Friday for more clarity on future interest rate hikes.
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The US central bank has raised its benchmark overnight interest rate by 225 basis points in total since March to contain inflationary pressures.
Data showed sales of new US single-family homes plunged to a 6-1/2-year low in July, while a survey from S&P Global showed its measure of private sector business activity fell to a 27-month low, suggesting Fed efforts to tame inflation were working.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.
Business activity in the euro zone contracted for a second straight month in August as the cost of living crisis forced consumers to cut spending while supply constraints also hurt manufacturers, a survey showed.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.32 per cent to 984.38 tonnes on Tuesday from 987.56 tonnes on Monday.
Spot silver fell 0.4 per cent to US$19.08 per ounce, platinum was steady at US$879.72, and palladium rose 0.8 per cent to US$1,995.70. REUTERS
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