Gold subdued as investors brace for Powell's speech
Gold prices dipped on Friday, with investors largely focusing on the Jackson Hole symposium for insights into the US Federal Reserve's monetary policy stance to curb inflation.
Spot gold fell 0.3% to $1 752.50 per ounce by 07:47 GMT, but was up 0.3% so far for the week. US gold futures was 0.4% lower at $1 764.60.
Intermittent dips in an otherwise resilient dollar put the greenback-priced bullion on track for a weekly gain.
The dollar index hovered near one-month highs, while benchmark US 10-year Treasury yields firmed.
"If Fed reiterates the fact that inflation is a top priority and will continue hiking until inflation is formally under control ... if they continue to be hawkish we could see fresh downside resuming for gold," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.
Fed Chair Jerome Powell's speech is due at 14:00 GMT on Friday at the Jackson Hole symposium in Wyoming in the United States.
Investors will closely watch for any clues on how aggressively the Fed will continue tightening monetary policy, and for indications on a potential change of strategy in case of an economic slowdown.
While gold is considered a safe investment during times of economic volatility, interest rate hikes increase the opportunity cost of holding non-yielding bullion.
"I think Powell's going to hint that bringing down inflation will probably require a trade off, in other words we'll have to take an economic hit ... This is going to be good for gold," said Stephen Innes, managing partner at SPI Asset Management.
Interest rate futures now imply a 60% chance of a 75 basis-point Fed hike at the September policy meet.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...
VISIT SHOWROOM
The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
