Gold traded close to a three-week low on Wednesday, with investors cautious ahead of the Federal Reserve’s Jackson Hole symposium.
Markets are looking to Chair Jerome Powell’s remarks and the release of the July meeting minutes for guidance on the future of monetary policy.
Expectations for monetary easing remain supportive, as two quarter-point cuts are still priced in for this year. Any indication that the Fed will confirm this path could lower yields and provide renewed traction for the precious metal. Conversely, a more cautious stance would reinforce Treasury yields and cap gold’s upside potential.
Investment demand has been strong in 2025, though momentum is slowing. Year-to-date, global gold ETFs have added around 419 tonnes, equivalent to USD 41 billion in inflows. However, the latest weekly data show only a 9.9-tonne increase, with Asia recording outflows. This suggests the inflows seen earlier in the year are losing pace, which could limit gold’s strength.
Geopolitical signals were mixed. While Ukrainian President Volodymyr Zelensky hailed the talks as progress, Moscow downplayed prospects for a summit. Any setback could weigh on risk appetite and lift demand for bullion. Meanwhile, conflict persisted in the Middle East, a backdrop that could help sustain safe-haven demand for gold.
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