GOLD hovered near all-time highs on Thursday (Aug 22) as minutes from the US Federal Reserve’s latest meeting cemented expectations of a September interest rate cut, with traders now awaiting Chair Jerome Powell’s speech for insights on rate outlook.
Spot gold was flat at US$2,511.80 per ounce, as at 0030 GMT, trading below a record high of US$2,531.60 hit on Tuesday.
US gold futures were also flat at US$2,548.50.
Minutes from the Fed’s Jul 30 to 31 meeting showed that officials were strongly inclined towards a rate cut next month.
Traders have fully priced in easing by the Fed at the September meeting, with a 62 per cent chance of a 25 bps cut, according to CME FedWatch tool. A low interest rate environment tends to boost non-yielding bullion’s appeal.
The Fed minutes pave the way for the Jackson Hole Economic Symposium starting Thursday, with Fed chair Jerome Powell set to speak on Friday.
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Additionally, the Bureau of Labor Statistics revised payrolls in the April 2023 to March 2024 period to show a 0.5 per cent reduction in jobs, equivalent to 818,000. This was at the higher-end of market estimates of up to one million fewer jobs.
The market will now be looking for initial jobless claims data due at 1230 GMT.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.07 per cent to 856.70 tonnes on Wednesday.
Elsewhere, Israel has not agreed to withdraw its troops from the Philadelphi corridor on the Egypt-Gaza border, Prime Minister Benjamin Netanyahu’s office said on Wednesday.
Spot silver edged 0.2 per cent lower to US$29.56 per ounce, platinum gained 0.4 per cent to US$967.25 and palladium fell 0.1 per cent to US$950.57. REUTERS
