Best week in six for gold, with Powell's speech in the limelight

25 Aug 2023 , 10:07 AM

As U.S. Treasury yields pulled off highs ahead of speeches by prominent central bankers, including Fed Chair Jerome Powell, that could provide guidance on future interest rates, gold prices remained near two-week highs on Friday and were on track to have their best week in six.

Spot gold was down 0.1% at $1,915.89 per ounce, remaining below the high set on August 10 on Thursday. It has risen 1.4% so far this week. American gold futures decreased 0.2% to $1,943.90.

Later on in the day, at the annual economic conference in Jackson Hole, Wyoming, Presidents of the European Central Bank Christine Lagarde and the United States Federal Reserve, Jerome Powell, are scheduled to talk.

Two Fed officials said on Thursday that they saw a high possibility that no further interest rate rises will be required and that a rise in bond market yields might complement the central bank’s efforts to slow the economy and bring inflation back to the 2% objective.

For the second consecutive week, fewer Americans were submitting new claims for unemployment benefits.

According to data released on Friday, core inflation in the capital of Japan decreased in August for the second consecutive month but continued to be high compared to the central bank’s 2% target.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased by 0.10% on Thursday.

Due to the country’s sluggish economic recovery, China’s gold imports via Hong Kong decreased for the third consecutive month in July, reaching their lowest level in six months.

Spot platinum increased by 0.5% to $938.38 and spot silver moved up 0.1% to $24.16 per ounce in other metals. At $1240.84, palladium was up 0.1%.

The best weeks for silver and platinum since July 14 were on the horizon. Palladium was expected to drop for a second consecutive week.

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