Gold Wavers as Traders Look to Jackson Hole and Ukraine Talks

(Bloomberg) -- Gold edged higher as traders looked ahead to potential interest-rate signals from the Federal Reserve’s annual gathering in Jackson Hole, as well as high-stakes diplomacy in Washington over efforts to end the war in Ukraine.

Bullion traded near $3,350 an ounce, stuck in a narrow range over the past few sessions. Central bankers from around the world will gather at the retreat in Wyoming starting Friday, with market pricing suggesting that a reduction in US rates is likely at the Fed’s policy meeting next month.

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The Fed’s Raphael Bostic said after a three-day tour of the southeastern US that tariff strains were real, high borrowing costs were squeezing business profits and he’s open to adjusting rates soon. Lower rates typically benefit gold because the precious metal doesn’t bear interest.

“Markets increasingly expect the Federal Reserve to strike a more dovish tone at the upcoming Jackson Hole symposium, with traders largely looking past last week’s slightly firmer U.S. inflation print,” said Priyanka Sachdeva, an analyst at Phillip Nova in Singapore. “The broader market view is that inflationary pressures remain on a cooling path.”

Meanwhile, Ukrainian leader Volodymyr Zelenskiy and his European allies are due to discover what US President Donald Trump committed to at his summit with Russia’s Vladimir Putin last week, amid apprehension that he’ll try to force Kyiv into making unpalatable concessions. Any signs of a ceasefire could ease demand for the precious metal as a haven.

Gold has rallied by more than a quarter this year, reaching a record in April. Since then, prices have tracked sideways, with investors following the fallout from the US-led trade war, concerns over the strength of the global economy and geopolitical tensions. Central-bank buying has also helped to support bullion.

Gold was up  to $ an ounce at 12:42 p.m. in London. The Bloomberg Dollar Spot Index was steady. Silver was up, platinum was little changed and palladium dropped.

--With assistance from Laura Avetisyan.

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