Gold little changed, slipping early Friday on a stronger dollar as investors awaited further direction from Federal Reserve Chairman Jerome Powell’s scheduled remarks later in the day in Jackson Hole, Wyoming.
The stronger dollar makes gold more expensive for holders of other currencies and pressures prices. Powell is expected to give signals about the Fed’s plans for monetary policy for the rest of the year, including whether the Fed will cut interest rates beyond a widely expected move in September, at the central bank’s annual conference.
Separately, a report from the Financial Accountability and Corporate Transparency Coalition, or FACT, urged the U.S. to take steps to fight the global illicit gold trade, which it said is bombing because of high prices. The group called on the U.S. to increase enforcement and prosecution against transnational criminal networks involved in the trade.
December gold futures fell 0.2% Thursday to settle at $3,381.60 an ounce on Comex, and the front-month contract dropped $1 in the first four days of the week. Bullion gained 1.2% in July after slipping 0.2% in June and losing 0.1% in May. It’s up 28% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The December contract is currently down $11.70 (-0.35%) an ounce to $3369.90 and the DG spot price is $3333.10.
The minutes of the last Fed policy meeting in July came out Wednesday and showed that members were worried about the labor market and inflation, though most agreed that it was too soon to cut interest rates. Still, there was a difference of opinion, with two Fed governors arguing for rate cuts. The officials noted in the minutes that they needed to continue monitoring threats to the U.S. economy.
The Fed kept interest rates unchanged last month at 4.25% to 4.50%, a rate that it’s held all year, despite encouragement from the Trump administration to immediately impose cuts.
Investors are betting on a rate cut at the Fed’s next policy meeting in September and most expect one more this year, though economic reports including on inflation and the labor market may affect policymakers’ thinking. Lower interest rates are typically bullish for gold, making the yellow metal a more attractive alternate investment.
More than 71% of the investors tracked by the CME FedWatch Tool are betting that the Fed will cut rates next month. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year. But two key reports released last week showed that U.S. inflation surged last month, weighing on the economy.
In economic news, weekly initial jobless claims for last week rose more than expected in data released Thursday, reaching an eight-week high. U.S. consumer confidence data comes out Friday.
Front-month silver futures rose 0.8% Thursday to settle at $38.58 an ounce on Comex, and the December contract is up 0.3% so far this week. Silver rose 1.5% in July after increasing 9.5% in June and adding 0.6% in May. It rose 21% in 2024. The September contract is currently down $0.234 (-0.61%) an ounce to $37.845 and the DG spot price is $37.97.
Spot palladium fell 0.6% Thursday to $1,115.00 an ounce and is down 0.5% so far this week. Palladium climbed 8.8% in July after surging 14% in June and advancing 2.8% in May. Palladium dropped 17% last year. The DG spot price is currently up $20.30 an ounce to $1135.00.
Spot platinum rose 1.1% Thursday to $1,356.70 an ounce and is up 0.8% so far this week. It dropped 3.9% in July after climbing 27% in June and rising 8.6% in May. Platinum lost 8.4% in 2024. The current DG spot price is currently down $15.60 an ounce to $1347.30.
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