Gold prices remained largely unchanged in Asian trading on Wednesday, stabilizing after recent losses as uncertainty over U.S. interest rates ahead of a key central bank symposium kept investors cautious.
Despite broad market risk-off sentiment, with equities around the globe posting significant declines this week, demand for the safe-haven metal was limited. Traders appeared to prefer the U.S. dollar over gold amid rising questions about whether the Federal Reserve will implement a rate cut in September.
Spot gold inched up 0.1% to $3,319.14 per ounce, while October gold futures advanced 0.1% to $3,361.20 an ounce by 01:30 ET (05:30 GMT). The metal also saw modest safe-haven interest amid ongoing uncertainty over the Russia-Ukraine conflict, as hopes for a near-term peace agreement remain slim.
Gold Awaits Jackson Hole Signals
Gold struggled to regain momentum as investors awaited further clues on U.S. monetary policy, prompting some capital to shift toward the dollar. Federal Reserve Chair Jerome Powell is scheduled to speak at the Jackson Hole Symposium on Friday, where traders hope to gain insight into potential rate cuts.
The market’s cautious positioning follows last week’s hot U.S. producer inflation report, which heightened concerns about the inflationary impact of trade tariffs. These data led some investors to scale back bets on a September rate reduction, although CME FedWatch still shows an 84% probability that the Fed will lower rates by 25 basis points next month.
Powell has so far remained non-committal regarding additional monetary easing, citing uncertainty around tariffs and their inflationary effects. His comments on Friday are expected to clarify the Fed’s stance, with traders bracing for potential market-moving signals.
The U.S. dollar strengthened Wednesday, pressuring metals markets. Spot platinum rose 0.1% to $1,316.70 per ounce, while spot silver slipped 0.6% to $37.1845 per ounce. Industrial metals were mixed, with London Metal Exchange copper futures steady at $9,702.45 per ton, and COMEX copper futures flat at $4.4285 per pound.
Russia-Ukraine Negotiations Under Scrutiny
Market attention also remains on U.S. efforts to mediate a peace deal between Russia and Ukraine. President Trump pledged security guarantees to Kyiv after meeting with Ukrainian and European leaders, but details of potential measures remain unclear.
Moscow intensified air strikes this week despite international calls for a ceasefire, and the willingness of Russian President Vladimir Putin to engage in peace talks remains uncertain. While discussions between Putin and Ukrainian President Volodymyr Zelensky could potentially lead to trilateral negotiations, the timing of such efforts is still vague.
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