Gold prices retaliate from record highs as dollar rallies ahead of major Federal Reserve updates

(MENAFN) On Thursday, gold prices experienced a decline during Asian trading, retreating from the record highs reached earlier in the week. Spot gold decreased by 0.5 percent to USD2,500.65 an ounce by 0243 GMT, falling below Tuesday’s peak of USD2,531.60. U.S. gold futures also saw a drop, falling by 0.4 percent to USD2,537.10. The fluctuations in gold prices indicate a period of market consolidation, with minor gains and losses characterizing recent trading activity. This phase of consolidation comes as investors prepare for upcoming U.S. jobs data and a pivotal speech by Federal Reserve Chairman Jerome Powell, which are expected to provide further insights into future interest rate policies.

The U.S. dollar, which had recently reached its lowest level since late December, saw a 0.2 percent increase following the release of the Federal Reserve's minutes from its July 30-31 meeting. These minutes revealed a strong inclination among Fed officials to implement interest rate cuts in the near future. A lower interest rate environment typically enhances the attractiveness of non-yielding assets like gold. As the dollar strengthens, it impacts gold’s appeal as a safe-haven investment. Market participants are now closely watching the Jackson Hole Economic Symposium, which kicks off on Thursday, with Federal Reserve Chairman Powell scheduled to speak on Friday. Additionally, investors are anticipating new unemployment claims data, set to be released at 1230 GMT.

In the broader precious metals market, other metals also saw declines. Silver prices fell by 0.9 percent to USD29.37 per ounce, platinum decreased by 0.41 percent to USD959.76 per ounce, and palladium dropped by 0.3 percent to USD948.55 per ounce. These movements reflect the overall impact of shifting economic indicators and investor sentiment on the precious metals market. 

MENAFN22082024000045015682ID1108589493