The U.S. dollar and Treasury yields declined on Thursday, supporting gold prices, which were already near two-week highs. Investors were waiting to see what interest rate signals the U.S. Federal Reserve could give at its annual Jackson Hole meeting.
Fundamentals
By 0124 GMT, spot gold was up 0.2% at $1,917.50 per ounce, not far from the record high set on Wednesday, August 11. The price of U.S. gold futures remained stable at $1,945.80.
From August 24 to 26, the Federal Reserve will hold its yearly symposium in Jackson Hole, Wyoming, with an emphasis on Chair Jerome Powell’s speech on Friday.
When compared to Asian currencies, the dollar suffered a significant decline as weaker-than-anticipated global economic data clouded the outlook for interest rates and drove down U.S. yields.
In August, U.S. business activity was on the verge of stagnation, with growth in the huge services sector declining and being at its worst level since February.
According to a poll released on Wednesday, the interest rate on the most common house loan in the US last week rocketed to its highest level since December 2000.
As significant declines in company activity suggested that the economy was becoming more painful, traders increased their wagers on Wednesday that the European Central Bank will stop raising interest rates in September.
Because to the Bank of England’s 14 consecutive rate rises to combat excessive inflation, Britain’s economy is faltering and may be headed for a recession.
A new law allowing the military-led government to extend its control of mines should not apply to currently operating operations, according to several of Mali’s major gold producers, but analysts warned it was likely to discourage future investment.
Other metals saw a 0.2% decline in spot silver to $24.27 per ounce and a 0.1% decline in platinum to $928.77. At $1275.59, palladium was up 0.1%.