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Gold prices are holding near record highs, moving in a tight range as market participants stay cautious ahead of the FOMC minutes released later today.
The latter are expected to offer clues about the Federal Reserve’s policies outlook. Traders are also waiting for Fed Chair Powell’s speech at the Jackson Hole Symposium this Friday, which will be closely watched for hints on the Fed’s policy direction. Any dovish remarks from Powell could provide further support to gold prices, especially if the dollar keeps depreciating.
Investors anticipate a 25 basis point rate cut by the Federal Reserve in September, which is putting downward pressure on US Treasury yields and making gold, a non-yielding asset, more attractive. Moreover, ongoing geopolitical tensions, uncertainties, and significant inflows into global gold ETFs are supporting gold’s bullish trend.
The upcoming U.S. Presidential election is also expected to impact gold prices in the short and medium term
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