Gold inches higher as dollar softens ahead of Powell speech
GOLD prices edged higher on Thursday (Aug 25) as the dollar slipped, while investors looked forward to a speech by US Federal Reserve chair Jerome Powell at the Jackson Hole symposium for clues on interest rate hikes and the health of the economy.
Spot gold was 0.1 per cent higher at US$1,753.01 per ounce, as of 1.10 am GMT.
US gold futures were up 0.3 per cent at US$1,766.
The dollar ticked 0.2 per cent lower, making gold less expensive for buyers holding other currencies, while benchmark US 10-year Treasury yields held near multi-week highs hit in the previous session.
Investors are bracing for the Fed to double down on its commitment to crushing inflation, and expect Powell at the annual central bank gathering in Wyoming this week to deliver an aggressive tightening message and dash hopes for a rate cut next year.
Higher interest rates increase the opportunity cost of holding non-yielding bullion while boosting the dollar.
New orders for US-manufactured capital goods increased in July, but the pace slowed from the prior month, while solid gains in shipments were also recorded in another sign that the economy continues to grow at a slow pace and was not in recession.
Spot silver eased 0.2 per cent to US$19.13 per ounce, platinum inched down 0.1 per cent to US$876.16, and palladium rose 0.5 per cent to US$2,044.19. REUTERS
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