Having bounced off a 3-week low of $3,311.56/oz., Spot Gold again eased on Thursday, as market players focused on the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, for cues on policy outlook.
Fed Chair Jerome Powell is expected to speak on Friday at the symposium, which will take place on August 21-23.
The Fed kept its federal funds rate target range without change at 4.25%-4.50% at its July meeting. But, two governors dissented in favor of a rate cut, which has been the first such dual dissent since 1993.
The minutes from the Fed’s meeting in July showed that most policy makers remained more concerned about persistent inflation pressures than about labor market risks.
Markets are now pricing in two rate cuts of 25 basis points each by the end of the year, with the first one likely in September.
“We don’t think gold prices are going to rise significantly and believe they are consolidating at the moment. Even if interest rates are cut slightly, we might see a slight uptick in gold prices, and…the $3,400 mark is possible. If not, then prices may continue to consolidate or possibly notch a little lower, closer to $3,300,” Brian Lan, managing director, GoldSilver Central, was quoted as saying by Reuters.
Spot Gold was last down 0.34% on the day to trade at $3,337.15 per troy ounce.
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