Gold Nudges Up, Week's Losses Loom

23 Aug 2024 , 10:40 AM

Gold prices edged higher on Friday, but were on track for a weekly loss as investors awaited U.S. Federal Reserve Chair Jerome Powell’s address at Jackson Hole, Wyoming, for more clues on the extent of a possible September rate cut.

Gold prices gained 0.2% to $2,488.59 per ounce. Bullion, which reached an all-time high on Tuesday, has dropped roughly 1% this week.

US gold futures rose 0.29% to $2,524.00.

Bullion sank more than 1% on Thursday as the dollar index recovered from a multi-month low and benchmark US 10-year yields increased. A stronger dollar and higher yields lessen the appeal of gold to holders of other currencies.

According to data released on Thursday, the number of Americans filing new applications for unemployment benefits increased last week, although the level still indicated that the job market is gradually cooling.

The CME FedWatch tool shows that traders have fully priced in Fed easing next month, with a 76% chance of a 25-basis-point decrease. A low interest rate environment tends to make non-yielding bullion more appealing.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings increased by 0.13% on Thursday.

Spot silver moved up 0.4% to $29.10 per ounce, while platinum rose 0.6% to $949.70 and palladium dipped 0.4% to $929.14.

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