Gold Jumps after 6-Day Selloffs as Dollar Rally Pauses
Gold closed higher for the first time in seven sessions on Tuesday as the United States (US) dollar eased ahead of the Friday keynote speech from Federal Reserve chair Jerome Powell at the central bank’s annual conference.
Gold for December delivery closed up at US$12.80 to settle at US$1,761.20 per ounce.
The rise comes ahead of Friday’s speech from Powell at the Jackson Hole, Wyoming, conference, which is expected to detail the Fed’s outlook for inflation and the economy and could potentially offer insight into the speed and size of the coming rate hikes.
The United States will also on Friday release July figures for personal consumption expenditures (PCE), the Fed’s preferred inflation measure. READ: Dollar Trades Mixed ahead of Fed Speech
“The Jackson Hole Symposium is the key focus for traders this week, with Core PCE inflation a close second.
“And gold will be highly sensitive to both of these events. Concerns that Jerome Powell will deliver a hawkish tone to his speech alongside a recession warning has seen the US dollar continue to surge and weigh on the yellow metal, as it gets dragged lower with metals and risk sentiment in general,” City Index analyst Matt Simpson said in a note.
The US dollar eased, with the ICE dollar index earlier pushing near a 20-year high of 109.29. The index was last seen down 0.47 points to 108.57 after touching 109.27.
Bond yields rose, bearish for gold since it offers no interest. The yield on the US 10-year note was last seen up 5.8 basis points to 3.042%. # Gold Jumps after 6-Day Selloffs as Dollar Rally Pauses
