Gold edges up ahead of Jackson Hall

Gold prices rose cautiously in the European market on Tuesday, stabilizing within a limited trading range above the lowest level in two weeks, supported by the current decline in US dollar levels in the foreign exchange market.

This cautious rise comes as investors refrain from building large buying positions, while awaiting the launch of the annual Jackson Hole Economic Symposium, where a number of major central bank governors are scheduled to speak, led by Federal Reserve Chairman Jerome Powell.

Price Overview

• Gold prices today: Gold rose by about 0.3% to ($3,341.87), from the opening level of ($3,332.57), recording a low of ($3,326.18).

• At Monday’s settlement, gold lost 0.1% and recorded the lowest level in two weeks at $3,323.64 per ounce, pressured by the rise in the US dollar and Treasury yields.

US Dollar

The dollar index fell on Tuesday by more than 0.1%, reflecting a renewed decline in the US currency against a basket of major and minor counterparts, which favors higher prices of gold and other dollar-denominated metals.

US Interest Rates

• According to the CME FedWatch Tool: Market pricing for a 25 basis point rate cut in September is currently steady at 84%, while the probability of rates remaining unchanged is at 16%.

• Market pricing for a 25 basis point rate cut in October is currently steady at 92%, with only 8% for no change.

• To reassess these expectations, markets await Fed Chair Jerome Powell’s speech on Friday at the Jackson Hole Symposium.

Gold Outlook

• Capital.com market analyst Kyle Rodda said: “Gold remains stable and is eagerly awaiting a new catalyst for an upward move. I think the most important event to watch is Jackson Hole and whether the Fed will provide cautious guidance.”

• Rodda added: “If a peace deal is reached between Ukraine and Russia—which is unlikely—that would be a very negative surprise for gold prices.”

SPDR Fund

Gold holdings at the SPDR Gold Trust, the world’s largest gold-backed ETF, remained unchanged on Monday, with the total at 965.37 metric tons, the highest level since September 9, 2022.