Gold Prices Edge Lower as Dollar Steadies Ahead of Jackson Hole
2022.08.26 04:37
By Ambar Warrick
Investing.com– Gold prices fell on Friday as traders awaited more cues on U.S. monetary policy from the Jackson Hole Symposium, but were set to end the week higher as the dollar retreated from 20-year peaks.
Spot gold prices dropped 0.3% to $1,754.43 an ounce, while gold futures fell 0.2% to $1,767.70 an ounce by 21:06 ET (01:06 GMT), snapping three straight days of gains.
The dollar index gained 0.1%, staying just below a 20-year high hit earlier this week as focus turned to Federal Reserve Chair Jerome Powell’s address to the economic forum.
Speculation over Powell’s stance on the path of monetary policy had weighed on the greenback in recent sessions, helping gold stage a three-day winning streak.
This also put gold on course to end the week marginally higher.
But the yellow metal has largely lost out to the dollar as a safe haven this year, as the Fed raised interest rates sharply to combat runaway inflation. This pushed up Treasury yields, boosting the dollar’s appeal.
Positive U.S. economic readings on Thursday also gave the Fed more space to continue its aggressive pace of interest rate hikes. Second-quarter GDP was revised to show a smaller contraction than initially expected, while U.S. jobless claims fell for a second straight week.
Other precious metals also fell on Friday. Platinum futures fell 0.2%, while silver fell 0.1%.
In industrial metals, copper futures rose 0.4%, extending gains from Thursday as expectations of more stimulus in major importer China drove up demand expectations.
China outlined more spending measures this week to support slowing economic growth. Traders expect Beijing’s focus on infrastructure and industrial spending to largely drive a recovery in copper demand.
Copper surged over 1.5% on Thursday, and was set to end the week up nearly 1%.
