Gold treads water ahead of Fed Warsh's Jackson Hole speech
In early Asian trading on Friday, gold prices slipped slightly as markets geared up for an anticipated address by Federal Reserve Chair Kevin Warsh at Jackson Hole. With Fed officials expressing concerns about ongoing inflation in the United State...
By Reuters |
TIMESOFINDIA.COM
Gold prices were subdued in early Asian trading on Friday, as markets geared up for U.S. Federal Reserve Chair Kevin Warsh's keenly anticipated remarks at the Jackson Hole symposium.
FUNDAMENTALS
* Spot gold was down 0.2% at $4,589.85 per ounce, as of 0041 GMT. U.S. gold futures fell 0.5% to $4,642.60.
* Fed officials shared on Thursday their ongoing concerns about the U.S. inflation landscape, as central bankers gathered in Jackson Hole, Wyoming, for the Kansas City Fed's closely watched annual economic symposium. The officials spoke a day after a report showed that the Personal Consumption Expenditures Price Index, the central bank's main inflation gauge, stood at 3.7% in the 12 months through July.
* Fed Chairman Kevin Warsh is slated to speak later in the day at the event.
* Data showed that the number of Americans seeking unemployment benefits for the first time fell for a second week while the overall number of people on jobless relief rolls slid to the lowest level in a month, signaling a stable labor market that should give the Fed leeway to focus on containing inflation.
* Traders see a 35.4% chance of a U.S. rate hike in September and a 74.6% chance by December, according to the CME FedWatch Tool.
* Despite its role as an inflation hedge, gold tends to lose appeal in a high interest-rate environment as it offers no yield.
* Qatar's prime minister visited Tehran on Thursday in an effort to revive stalled diplomacy six months into the war, as U.S. President Donald Trump said Washington was not currently talking to Iran.
* Among other metals, spot silver lost 0.2% to $69.12 per ounce and palladium fell 0.1% to $1,349.34. Platinum was down 0.2% to $1,842.26 and was on track for a weekly loss.
FUNDAMENTALS
* Spot gold was down 0.2% at $4,589.85 per ounce, as of 0041 GMT. U.S. gold futures fell 0.5% to $4,642.60.
* Fed officials shared on Thursday their ongoing concerns about the U.S. inflation landscape, as central bankers gathered in Jackson Hole, Wyoming, for the Kansas City Fed's closely watched annual economic symposium. The officials spoke a day after a report showed that the Personal Consumption Expenditures Price Index, the central bank's main inflation gauge, stood at 3.7% in the 12 months through July.
* Fed Chairman Kevin Warsh is slated to speak later in the day at the event.
* Data showed that the number of Americans seeking unemployment benefits for the first time fell for a second week while the overall number of people on jobless relief rolls slid to the lowest level in a month, signaling a stable labor market that should give the Fed leeway to focus on containing inflation.
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* Traders see a 35.4% chance of a U.S. rate hike in September and a 74.6% chance by December, according to the CME FedWatch Tool.
* Despite its role as an inflation hedge, gold tends to lose appeal in a high interest-rate environment as it offers no yield.
* Qatar's prime minister visited Tehran on Thursday in an effort to revive stalled diplomacy six months into the war, as U.S. President Donald Trump said Washington was not currently talking to Iran.
* Among other metals, spot silver lost 0.2% to $69.12 per ounce and palladium fell 0.1% to $1,349.34. Platinum was down 0.2% to $1,842.26 and was on track for a weekly loss.
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