· Gold inched lower on Thursday after comments from U.S. Federal Reserve officials dampened hopes for additional monetary easing, although investors awaited further clarity from the central bank chief at the Jackson Hole symposium.
Spot gold was down 0.18% at $1,499.5 an ounce, having earlier touched its lowest since Aug. 13 at $1,491.50.
The most active gold contract for December delivery fell 7.2 U.S. dollars to close at 1,508.50 dollars per ounce.
· “The entire market is in a wait-and-see mode, but there has been a steady stream of Fed speakers who have come out with a more hawkish message,” said Daniel Ghali, commodity strategist at TD Securities.
“This could be interpreted as an attempt to ready the markets for a less dovish than expected speech from Fed Chair Jerome Powell.”
· A day after minutes of the Fed’s July meeting showed policymakers were divided over interest rate cuts, Philadelphia Fed President Patrick Harker said he does not see the case for additional stimulus.
· Focus is now on Powell’s speech on Friday during the central bank’s symposium at Jackson Hole, Wyoming, with market participants expecting him to clarify the July minutes and monetary policy direction.
· “For the most part, most traders just see this drop (in prices) as an opportunity to pick up a little bit more, but nobody is expecting any big moves out of Jackson Hole,” said Michael Matousek, head trader at U.S. Global Investors.
· Gold, however, had briefly turned positive after U.S. manufacturing data showed the first month of contraction in almost a decade amid concerns over whether the U.S.-China trade conflict would trigger a recession. Investors will also keep a close eye on the Group of Seven summit this weekend.
Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, have increased by about 24 tonnes so far this month.
· The Dow Jones Industrial Average, which fell slightly in the morning, gradually turned some 100 points higher prior to gold's settlement. The rise of equities usually leads to the fall of gold.
As for other precious metals, silver for September delivery was down 11.1 cents, or 0.65 percent to close at 17.04 dollars per ounce.
· Platinum for October delivery was up 3.8 dollars, or 0.44 percent, to settle at 861.90 dollars per ounce.
Reference: CNBC, Xinhua
Thai
Eng