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God prices fall to 3-week low amid strong dollar & focus on Federal Reserve
A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. (Photo: Reuters)
Gold edged higher on Wednesday but remained near a three-week low as the dollar strengthened, while investors awaited the Federal Reserve's Jackson Hole symposium later this week for potential signals on monetary policy.
Spot gold was up 0.2 per cent at $3,321.83 per ounce, as of 0601 GMT, after reaching its lowest level since August 1.
US gold futures for December delivery rose 0.2 per cent to $3,364.30.
A stronger dollar and improving risk appetite from recent geopolitical developments are weighing on gold prices, with markets looking out for Fed Chair Jerome Powell's speech in Jackson Hole, OANDA senior market analyst Kelvin Wong said.
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The US dollar index climbed to a more than one-week high, making gold less affordable for buyers using other currencies.
Powell is due to speak at the Kansas City Federal Reserve's Jackson Hole symposium on Friday and investors are watching for any clues on monetary policy trajectory.
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.
'The macroeconomic backdrop is likely to turn supportive, with Fed resuming its interest rate cuts from September. Higher tariffs will impact economic growth, keeping investment strong for gold,' ANZ said in a note.
Gold typically performs well in a low-interest-rate environment and amid heightened uncertainties.
Meanwhile, 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 Zelenskiy 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 fell 0.5 per cent to $37.20 per ounce, platinum gained 0.6 per cent to $1,314.25 and palladium was down 0.6 per cent to $1,108.25.
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(Reporting by Anmol Choubey in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
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Write to Nick Timiraos at
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