Gold hits near three-week low on stronger US dollar; Fed symposium in focus

[BENGALURU] Gold prices inched lower on Wednesday (Aug 20) to their lowest level in nearly three weeks as the US dollar strengthened, while investors awaited the Federal Reserve’s Jackson Hole symposium later this week for clues on the path for monetary policy.

Spot gold was down 0.1 per cent at US$3,312.79 per ounce, as at 8.35 am, after reaching its lowest level since Aug 1.

US gold futures for December delivery fell 0.1 per cent to US$3,355.20.

The US dollar index climbed to its highest level in more than a week, making gold less affordable for buyers using other currencies.

Fed chair Jerome Powell’s speech at the Jackson Hole symposium from Aug 21 to 23 is the main focus, with investors watching for any pushback against market pricing of a rate cut next month.

Minutes of the Fed’s July meeting, due later in the day, are anticipated to offer further insights into the central bank’s policy stance.

Interest rate futures point to two rate cuts of 25 basis points each this year, with the first one expected in September.

Gold typically performs well in a low-interest-rate environment and amid heightened uncertainties.

US President Donald Trump ruled out deploying ground troops to Ukraine on Tuesday but suggested air support could be part of a deal to end Russia’s war in the region.

Ukrainian President Volodymyr Zelensky hailed the White House talks as a “major step forward” towards ending Europe’s deadliest conflict in 80 years and setting up a trilateral meeting with Russian President Vladimir Putin and Trump.

Elsewhere, spot silver held steady at US$37.35 per ounce, platinum gained 0.3 per cent to US$1,309.35, and palladium was down 0.4 per cent to US$1,110.50. REUTERS