Gold Prices Rise, Focus on the Fed and Ukraine
Gold prices rose on Monday (August 18th) as market participants awaited signals on interest rate direction from the annual meeting of world central banks in Jackson Hole, USA, as well as key diplomatic developments between Ukraine and the United States. The precious metal rose 0.7% and traded near $3,350 per ounce, recovering some of last week's 1.8% decline.
The Jackson Hole meeting, which begins Friday, is in the spotlight, particularly with a speech by Fed Chairman Jerome Powell. Market participants are now pricing in the possibility of an interest rate cut at the Fed's policy meeting next month. Additional signals came from Atlanta Fed President Raphael Bostic, who stated that tariffs and high borrowing costs are beginning to pressure business profits and that he is open to policy adjustments.
So far this year, gold has risen more than 25%, with the biggest surge occurring in the first four months when prices hit a record high in April. However, since then, price movements have been relatively flat amid global economic uncertainty, US-led trade conflicts, and geopolitical tensions. Gold purchases by central banks have also been a supporting factor.
Meanwhile, Ukrainian President Volodymyr Zelenskiy and his European allies are seeking clarity regarding the outcome of last week's meeting between US President Donald Trump and Russian President Vladimir Putin. Concerns have arisen that Kyiv may be pressured into accepting an unfavorable deal in an effort to end the war. As of 3:24 p.m. Singapore time, gold rose 0.6% to $3,355.21 per ounce, while the Bloomberg Dollar Index was stable, while other metals such as silver were stagnant, and platinum and palladium declined. (ayu)
Source: Newsmaker.id
