Global gold prices eased on Wednesday, August 21, as the U.S. dollar strengthened. Investors are closely monitoring the upcoming remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, seeking clues on the central bank’s future monetary policy direction.
By the end of the session, spot gold slipped 0.3% to $3,337.95 per ounce, while gold futures fell 0.2% to $3,386.50 per ounce.
Meanwhile, the U.S. Dollar Index climbed 0.4%, making dollar-denominated gold more expensive for buyers holding other currencies.
Powell is scheduled to deliver a speech on August 22 at the annual Jackson Hole Economic Policy Symposium, which will center on the U.S. economic outlook and the Fed’s policy stance.
Analysts Weigh In on Potential Scenarios
Edward Meir, an analyst at Marex, commented:
“If Powell signals a rate cut in September, it won’t make a big difference since markets have largely priced it in. However, if he hints at additional cuts in October, November, or December, the U.S. dollar could weaken and gold prices may rise.”
Gold, a non-yielding asset, tends to perform better in a low-interest-rate environment. The Fed has held rates steady since December 2024, but CME FedWatch Tool data indicates a 71% probability of a 0.25% rate cut in September 2025.
Recent data revealed that U.S. jobless claims increased significantly last week, marking the sharpest rise in nearly three months.
In a surprising twist, Bloomberg reported that the U.S. Department of Justice is planning to investigate Fed Governor Lisa Cook over allegations of mortgage fraud. A senior official has reportedly urged Chair Powell to remove her from the Board of Governors.a
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