Gold close to 2-week highs as market monitors Jackson Hole meeting rate hints

24 Aug 2023 , 09:05 AM

The U.S. dollar and Treasury yields declined on Thursday, supporting gold prices, which were already near two-week highs. Investors were waiting to see what interest rate signals the U.S. Federal Reserve could give at its annual Jackson Hole meeting.

Spot gold was almost at its highest level since Aug. 11 on Wednesday, up 0.2% at $1,917.50 per ounce. Futures on U.S. gold were little changed at $1,945.80.

From August 24-26, the Federal Reserve will hold its annual symposium in Jackson Hole, Wyoming, with an emphasis on the speech by Chair Jerome Powell on Friday.

The dollar suffered a significant decline in value against Asian currencies after weaker-than-anticipated global economic statistics clouded the outlook for interest rates and drove down U.S. yields.

In August, the U.S. economy was on the verge of stagnation, with growth in the massive services sector declining and being at its worst level since February.

According to a study released on Wednesday, the interest rate on the most common house loan in the US last week rose to its highest level since December 2000.

In light of Wednesday’s severe declines in corporate activity, traders increased their wagers that the European Central Bank will stop raising interest rates in September.

Because to the Bank of England’s 14 consecutive rate rises to combat excessive inflation, Britain’s economy is faltering and may be headed for a recession.

 A new law allowing the military-led government to boost its control of mines should not apply to currently operating operations, according to some of Mali’s major gold miners, but analysts warned it was likely to discourage future investment.

Other metals saw a 0.2% decline in spot silver to $24.27 per ounce and a 0.1% decline in platinum to $928.77. At $1275.59, palladium was up 0.1%.

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