Spot gold fell 0.2% to $3,339.97 per ounce at 03:58 GMT, while US gold futures for December delivery slipped 0.2% to $3,382.40 an ounce. A stronger US dollar index, up 0.1%, added pressure by making gold more expensive for overseas buyers.
Market focus is on Fed Chair Jerome Powell’s keynote address on Friday (August 22). Investors are keen to see whether the Fed will emphasise inflation risks or signal support for the labor market. According to CME’s FedWatch tool, traders see an 85% chance of a quarter-point rate cut in September.“Gold prices are consolidating at the moment. Even if interest rates are cut slightly, we might see a minor uptick, with $3,400 an ounce possible. Otherwise, prices may continue to consolidate or slip closer to $3,300 an ounce,” said Brian Lan, Managing Director, GoldSilver Central, Singapore.
Indian bullion prices
In India, gold prices stood at ₹1 lakh per 10 grams for 24-karat gold, ₹92,300 for 22-karat gold, and ₹75,520 for 18-karat gold, according to Goodreturns.
Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA), said movements in local bullion are being guided by global cues.“Concerns around China’s slowing economy, volatile US treasury yields, and economic disputes among nations have weighed on prices. In a situation with mixed signals, gold seems range-bound but remains resilient as protection against inflation and currency volatility,” Kamboj said.
Policy expectations and market reactions
Analysts believe Powell’s remarks at Jackson Hole will set the tone for bullion in the near term.
Darshan Desai, CEO, Aspect Bullion & Refinery, said, “Any dovish stance from Powell could support further gains in bullion. With expectations rising for a Fed rate cut in September, any dip in gold is likely to attract renewed buying interest.”
Manav Modi, Analyst – Precious Metals, Motilal Oswal Financial Services, noted that political uncertainty in the US has also influenced prices. “Gold was pressured earlier in the week but gained support after US President Trump called on Fed Governor Lisa Cook to resign. Focus now shifts to Powell’s speech and US economic data, including PMI numbers and jobless claims.”
Rahul Kalantri, VP Commodities, Mehta Equities, highlighted that gold is trading with high volatility. “In India, gold has support at ₹99,050-98,750 per 10 grams and resistance at ₹99,650-99,950 per 10 grams,” he said.
–With Reuters inputs
