Gold Prices Drop Ahead of Jackson Hole Symposium
Gold prices traded lower on Friday in Asia ahead of the Federal Reserve’s annual Jackson Hole Symposium, where Fed Chair Jerome Powell is expected to provide clarity on future monetary easing plans.
Gold Futures for December delivery, traded on the Comex division of the New York Mercantile Exchange, fell 0.2% to $1,504.85 by 1:11 AM ET (05:11 GMT).
Markets currently expect the Fed to slash rates again at its next meeting in September, but uncertainties surrounding the direction of future monetary policy increased following the release of minutes from the central bank’s latest policy meeting.
The Fed did not reveal plans for a series of rate cut some expected previously, suggesting the cut last month was a one-off move.
Powell was said to be under pressure from President Donald Trump to announce a full percentage point cut in rates support the Wall Street and other markets. But most economists also expect Powell to uphold his independence and ignore the president.
Non-yielding bullion is generally considered to benefit from lower rates.
Developments in the on-going political unrest in Hong Kong and Sino-U.S. trade talks are also expected to dictate the safe-haven gold’s direction next week.