Gold prices steadied in Asian trade on Wednesday, pausing after sharp losses in the previous session as investors kept to the sidelines ahead of this week’s Jackson Hole Symposium.
Spot gold (XAU/USD) ticked up to $3,325.80 an ounce by 08:40 GMT, with demand muted despite a broader risk-off mood that has weighed heavily on global equities. Traders instead favoured the dollar, with doubts mounting over whether the Federal Reserve will press ahead with a September rate cut.
Hot producer inflation data last week has complicated the outlook, raising concerns over the impact of President Trump’s trade tariffs. While markets still price an 84% chance of a 25 basis-point cut next month, some bets have been trimmed.
Fed Chair Jerome Powell is due to speak at Jackson Hole on Friday, with investors watching closely for signs of how policymakers plan to balance inflation risks with the push for looser monetary policy.
Geopolitical tensions offered little support, with conviction growing that Ukraine peace efforts remain distant. For now, gold remains on the back foot, caught between safe-haven flows and the pull of a stronger dollar.