Gold Price Edges Up as Market Awaits Fed Minutes and Powell Speech

Gold prices edged higher on Wednesday as investors keenly awaited the US Federal Reserve’s July meeting minutes and Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium. Spot gold gained 0.8% to $3,341.56 per ounce, recovering much of the week’s earlier losses. US gold futures mirrored this move, rising 0.8% to $3,385.20 per ounce in New York.

Gold Price Movements and Fed Watch

Gold surged above $3,400 earlier this month after the Fed held interest rates steady in July. This decision raised market expectations for a rate cut in September, which boosted gold’s appeal as a non-interest-bearing safe haven. However, mixed US economic data since then caused a slight pullback. Market participants are now focusing on the Fed’s meeting minutes due later today, hoping for hints of a dovish stance.

RJO Futures strategist Bob Haberkorn noted that traders see the recent dip as a buying opportunity ahead of the Fed minutes. “If Powell signals dovishness, gold could break through $3,350 and retest $3,400 per ounce,” he said. Currently, the CME FedWatch tool shows an 85% probability of a quarter-point rate cut in September.

Geopolitical Tensions and Gold’s Safe Haven Status

Meanwhile, geopolitical risks continue to support gold prices. Markets are monitoring potential developments between Russia and Ukraine, where any signs of a ceasefire could reduce gold demand. Despite trading in a narrow range since April’s record near $3,500, gold has gained over 25% this year. Trade tensions and central bank buying also underpin its strength. Major banks like UBS and Citigroup project further upside in gold prices amid ongoing global uncertainties.

SuperMetalPrice Commentary:

Gold remains a key indicator of market sentiment amid economic and geopolitical uncertainty. The upcoming Fed minutes and Powell’s speech will likely dictate near-term price movements. A dovish Fed could propel gold above critical resistance levels, while hawkish signals might cap gains. Investors should watch global geopolitical developments closely, as they significantly influence gold’s safe-haven appeal. Overall, the precious metal’s upward trajectory remains intact, supported by inflation fears and cautious monetary policy expectations.