Online Reporter
Gold edged higher as traders weighed the outlook for US monetary policy ahead of a key speech by Federal Reserve Chair Jerome Powell later this week.
Bullion traded near US$3 330 an ounce as markets await clues from Powell’s annual address in Jackson Hole, Wyoming, on Friday.
Swaps are pricing in a high probability the Fed will cut borrowing costs by a quarter point next month. Lower rates benefit gold as it doesn’t pay interest.
Still, the Fed’s monetary easing path has been complicated by a hotter-than-expected inflation print last week that caused some traders to dial back rate-cut expectations.
In the face of mounting pressure from President Donald Trump for hefty reductions, Powell has expressed concern, with import tariffs at the highest levels in a century.
Markets are also watching US and European efforts toward a landmark meeting between Presidents Vladimir Putin and Volodymyr Zelenskiy.
Any signs of a Russia-Ukraine ceasefire could ease demand for the precious metal as a haven, but a peace deal is still elusive.
Gold has climbed more than a quarter this year, as trade-war fears and geopolitical tensions boosted its appeal as a safe asset, while central bank buying and inflows to exchange-traded funds also provided support.
Though it has traded in a relatively tight range since reaching a record at roughly US$3 500 in April, banks like UBS Group AG and Citigroup Inc expect further gains.
Spot gold added 0,4 percent to US$3 329.69 an ounce as of 12:22 p.m. in London. The Bloomberg Dollar Spot Index was flat. Silver and palladium declined, while platinum gained.
In base metals, copper fell 0,2 percent to US$9 675.50 a ton on the London Metal Exchange. Aluminium and zinc edged higher. — Bloomberg
