Gold prices are seeing modest gains in quieter trading this week as investors await fresh signals from the U.S. Federal Reserve. In early U.S. trading on Tuesday, December gold futures rose $6.30 to $3,384.70, while September silver added $0.076 to $38.115.
The market’s focus is firmly on the Kansas City Federal Reserve’s annual Economic Policy Symposium in Jackson Hole, Wyoming, which begins Thursday evening. Fed Chair Jerome Powell is scheduled to deliver a closely watched speech on Friday, where he may provide insight into the Fed’s stance on future interest rate cuts. Any indication of looser monetary policy could provide further support for gold, which remains highly sensitive to interest rate expectations.
Market Backdrop
Global equities traded mixed overnight, while U.S. stock indexes looked set to open lower. The U.S. dollar index was slightly weaker, providing additional support for precious metals, while crude oil dipped to around $62.75 a barrel. The yield on the benchmark U.S. 10-year Treasury note stood at 4.332%.
In Asia, China’s central bank injected 465.7 billion yuan ($65 billion) of liquidity into its financial system through reverse repurchase agreements, its largest daily net injection since July. The move is aimed at stabilising bond markets, which have come under pressure as investors shift toward equities amid renewed optimism over U.S.-China trade talks and Beijing’s economic measures.
Why It Matters for Gold
With market participants largely in a holding pattern ahead of Jackson Hole, gold is benefitting from cautious positioning. Traders are mindful that Powell’s speech could set the tone for the September Fed meeting. A dovish signal—suggesting a willingness to cut rates—would likely weaken the dollar further and boost demand for safe-haven assets like gold and silver.
Outlook
While short-term moves remain muted, the underlying drivers for gold—monetary policy uncertainty, geopolitical risks, and central bank demand—continue to provide strong support. Investors will be watching closely for Powell’s remarks on Friday, which could trigger sharper price action across the precious metals markets.
