Gold Gains Slightly Ahead of Powell Speech and Ukraine Peace Efforts
Gold prices edged higher, approaching $3,345 per ounce in trading on Tuesday (August 19th), as market participants weighed two key factors: the US diplomatic push to end the Russia-Ukraine war and the focus on the Federal Reserve's annual meeting in Jackson Hole. Investors await Fed Chairman Jerome Powell's speech on Friday, which is expected to signal the direction of future monetary policy.
Expectations for a September interest rate cut are growing, and if confirmed, this would provide additional support for gold, which tends to benefit from lower borrowing costs. As a non-yielding asset, gold becomes more attractive when interest rates fall.
On the geopolitical front, President Donald Trump held a direct call with Vladimir Putin to discuss a possible summit with Volodymyr Zelenskiy. This effort came after Trump had previously hosted the Ukrainian president and European leaders at the White House. This diplomatic push gave the market a glimmer of hope, although the conflict is far from over.
Technically, gold is still trading within a narrow range after hitting a record high above $3,500 per ounce last April. However, support continues to come from central bank buying and inflows into gold-backed ETFs. As of midday in London, spot gold was up 0.3% at $3,343.38; while silver was stagnant, platinum and palladium rose more than 1%. (alg)
Source: Newsmaker.id
