Gold stabilises near US$1,900 level ahead of Jackson Hole meet
GOLD prices gained on Wednesday (Aug 23), as a slight pullback in US dollar and Treasury yields helped bullion stabilise near a key US$1,900 level ahead of a central bankers’ gathering that would likely provide cues on interest rates outlook.
Spot gold was up 0.2 per cent at US$1,900.30 per ounce by 0123 GMT, while US gold futures rose 0.2 per cent to US$1,929.40.
The US dollar index was sitting below two-month highs, while a rally that took US Treasury yields to nearly 16-year highs took a pause, giving some respite to gold that does not yield any interest.
The annual Jackson Hole Symposium in Wyoming later this week will be monitored for any hints on how high can interest rates go.
The Federal Reserve must be open to the possibility that the economy will begin to reaccelerate rather than slow, with potential implications for the US central bank’s inflation fight, Richmond Fed president Thomas Barkin said on Tuesday.
US existing home sales dropped to a six month-low in July, data showed on Tuesday.
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Japan’s factory activity shrank for a third straight month in August, although the pace of decline slowed, a private sector survey showed on Wednesday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.5 per cent on Tuesday.
Swiss gold exports fell 2 per cent in July from June, as lower deliveries to China and India failed to compensate for a sharp growth in supplies to Turkey, Swiss customs data showed on Tuesday.
In other metals, spot silver gained 0.5 per cent to US$23.50 per ounce and platinum added 0.4 per cent to US$922.53. Palladium was up 0.2 per cent at US$1,262.63. REUTERS
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