Spot Gold held just below a 2 1/2-week peak of $3,399.36 on Thursday, as market players awaited the US PCE inflation data for fresh clues on the Federal Reserve’s monetary policy trajectory.
At the annual symposium in Jackson Hole, Federal Reserve Chair Jerome Powell hinted at a possible rate cut in September, as risks to the job market were rising.
New York Fed President John Williams also said a rate cut was being considered, echoing Powell’s remarks.
Markets are now pricing in about an 89% chance of a 25 basis point rate cut in September, compared to 82% a week ago.
Gold has also drawn support from political and institutional uncertainty between the Trump administration and the Fed.
US President Donald Trump said in a social media post this week he would fire Federal Reserve Governor Lisa Cook over allegations of mortgage fraud. But, Cook’s lawyer vowed to challenge the decision in court.
Spot Gold was last down 0.03% on the day to trade at $3,396.57 per troy ounce.
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