Gold prices are treading water this week, with investors keeping a close eye on Federal Reserve Chair Jerome Powell’s upcoming address at the Jackson Hole symposium in Wyoming. His speech, due Friday, could offer crucial clues about where U.S. interest rates are headedby extension, the future path of gold.
Where prices stand now
Spot gold is hovering around $3,315 an ounce, little changed in early Asian trading on Tuesday after slipping 0.5% in the prior session. The dip came as diplomatic moves to ease the Russia-Ukraine conflict softened demand for traditional safe havens like bullion.
Why Powell matters for gold
Markets are widely betting the Fed will trim borrowing costs by 0.25 percentage point next month, a move that would support gold, which doesn’t generate interest but becomes more attractive when yields fall. However, Powell’s messaging could complicate that outlook.
A hotter-than-expected U.S. inflation report last week prompted traders to scale back expectations of aggressive rate cuts. Meanwhile, political pressure is adding a layer of uncertainty: President Donald Trump has openly pushed for deeper cuts, even as Powell has warned that tariffs could fuel fresh price pressures.
The bigger picture
Despite recent fluctuations, gold has been one of the standout assets of 2025, gaining over 25% this year. The rally has been driven by robust central bank buying, steady inflows into gold-backed exchange-traded funds, and persistent geopolitical jitters. Analysts also cite the global move toward “de-dollarization” as a tailwind.
For now, gold remains rangebound. But with rate cuts on the horizon, investors are watching whether Powell signals a cautious trimming cycle, or bows to mounting pressure for steeper easing.
Other precious metals
Silver, palladium, and platinum were all steady in early trading. Meanwhile, the Bloomberg Dollar Spot Index ticked 0.1% higher, a reminder that currency moves will also shape gold’s trajectory in the weeks ahead.
