Gold holds steady around the $1,900 mark before the Jackson Hole meeting

23 Aug 2023 , 09:54 AM

In advance of a meeting of central bankers that is likely to provide information on the future direction of interest rates, gold prices rose on Wednesday as a little decline in the value of the U.S. dollar and Treasury yields helped bullion stabilize near a critical $1,900 mark.

Spot gold was up 0.2% at $1,900.30 per ounce, and U.S. gold futures were up 0.2% at $1,929.40.

As the rise that brought U.S. Treasury yields to nearly 16-year highs came to a halt, gold, which pays no interest, received some relief. The dollar index was trading at levels below two-month highs.

We’ll be keeping an eye out for any signals about how high-interest rates can go during the annual Jackson Hole Symposium in Wyoming later this week.

Thomas Barkin, president of the Richmond Fed, said on Tuesday that the Federal Reserve must be prepared for the prospect that the economy would start to pick up speed rather than slow down, which might have ramifications for the fight against inflation.

According to data released on Tuesday, U.S. existing home sales in July fell to a six-month low.

According to a private sector survey released on Wednesday, factory activity in Japan decreased for a third consecutive month in August, though the rate of fall moderated.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.5% on Tuesday. 

Swiss customs data released on Tuesday revealed that 2% less Swiss gold was exported to Turkey in July compared to June, despite decreased deliveries to China and India.

Spot platinum increased by 0.4% to $922.53 and spot silver rose by 0.5% to $23.50 per ounce. Palladium rose 0.2% to $1,262.63 per ounce.

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