Gold prices held above 5-month lows on Monday, after falling in the previous five sessions, as investors braced for this week's meeting of central bankers at Jackson Hole, Wyoming, to discuss the economy and interest rates. By 0124 GMT, spot gold was unchanged at $1,888.36 per ounce, while US gold futures were up 0.1% to …
Gold prices held above 5-month lows on Monday, after falling in the previous five sessions, as investors braced for this week’s meeting of central bankers at Jackson Hole, Wyoming, to discuss the economy and interest rates. By 0124 GMT, spot gold was unchanged at $1,888.36 per ounce, while US gold futures were up 0.1% to $1,917.70. Prices fell to their lowest level since mid-March last week, at $1,883.70, as positive economic news increased expectations on higher-for-longer U.S. interest rates, cutting demand for gold, which pays no interest.
As central bankers from across the world gather in Jackson Hole for their annual conference, investors’ attention will be focused on US Federal Reserve Chair Jerome Powell’s address on Friday. According to a strong majority of economists polled by Reuters, the Fed is likely done raising interest rates, and a slim majority now expects the central bank to wait at least until the end of March before dropping them. Rising Treasury bond yields and home mortgage rates may diminish Fed support for more interest rate hikes, which has already been fading due to lower inflation.
Meanwhile, China dropped its one-year benchmark lending rate on Monday, as expected, as officials strive to boost credit demand, but shocked investors by leaving the five-year rate constant. The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.3% increase in holdings to 890.10 tonnes on Friday, up from 887.50 tonnes on Thursday. Last week, premiums on physical gold in China reached their highest level since December 2016, while lower domestic prices enticed some purchasers in India.
Spot silver was steady at $22.71 per ounce, while platinum traded around $909.57. Palladium was up 0.1% at $1,257.43 per ounce.
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
