Gold prices slipped in Asian trade on Friday, with the market on edge ahead of Jerome Powell’s address at the Jackson Hole Symposium later today.
Spot gold (XAU/USD) was last at $3,328.31 an ounce by 09:45 GMT, pressured by a firm dollar and fading bets on US rate cuts.
Traders have scaled back expectations of a September cut after the Fed’s July minutes showed most policymakers favouring patience.
Fed fund futures now price a 73.1% chance of a 25 basis point reduction next month, down from over 92% a week ago.
Still, demand has been underpinned by safe-haven flows, with growing doubts over any imminent Russia-Ukraine peace deal keeping a floor under prices.
Attention now turns to Powell’s 15:00 UK time speech, where investors will watch his remarks for clues on inflation, the labour market and the Fed’s response to the impact of Trump’s tariffs. Any shift in tone could set the pace for gold into next week.