Gold was subdued on Friday, as investors
adopted a cautious stance ahead of US Federal Reserve Chair
Jerome Powell’s speech at a key central bankers’ conference,
which will be watched for guidance on future interest rate
Spot gold inched 0.2% lower to $1,755.00 per ounce by
0311 GMT. US gold futures dropped 0.2% to $1,768.10.
However, greenback-priced bullion is set for a weekly rise
of about 0.4%, helped by intermittent dips in an otherwise
The dollar index hovered near one-month highs, while
benchmark US 10-year Treasury yields firmed.
Gold has retreated because the dollar has started picking up
some steam and there’s also some thought that the Fed will
remain in inflation fighting mode, which will be perceived as
hawkish, said Stephen Innes, managing partner at SPI Asset
Powell’s speech is due at 1400 GMT on Friday at the Jackson
Hole symposium in Wyoming in the United States.
His address will be watched closely by market participants
for any clues on how aggressively the US central bank will
continue tightening monetary policy, and for indications on a
potential change of strategy in case of an economic slowdown.
While gold is considered a safe investment during times of
economic volatility, interest rate hikes increase the
opportunity cost of holding non-yielding bullion.
“I think Powell’s going to hint that bringing down inflation
will probably require a trade off, in other words we’ll have to
take an economic hit … This is going to be good for gold,”
Fed officials on Thursday maintained that they will drive
rates up and keep them there until inflation has been squeezed.
Spot silver slipped 0.3% to $19.22 per ounce, and
palladium was steady at $2,146.84. Both are set for a
Platinum rose 0.3% to $883.63, but is down for a
second consecutive week.
(Reporting by Eileen Soreng and Bharat Govind Gautam in
Bengaluru; Editing by Sherry Jacob-Phillips)