Gold 
“Gold held near a record high, as attention turns to Fed Chief Jerome Powell’s upcoming speech at Jackson Hole. Bullion breached $2,500 an ounce for the first time on Friday, continuing an upward trend that’s seen the yellow metal gain more than 20% so far this year. It remained just above that milestone on Monday, though slightly below the recent record.
Powell’s Friday speech at the central bank symposium in Jackson Hole, Wyoming, is a key focus for traders looking for clues on the path forward for widely anticipated cuts by the US Federal Reserve — one of the main drivers for gold’s blistering run. Lower rates are often seen as beneficial for the precious metal, which doesn’t yield interest.
Other economic data releases this week, including US jobless claims, should also shed light on the central bank’s direction. “Very shallow corrections during gold’s rally in recent months highlights its underlying strength,” according to a
Monday report from Saxo Bank A/S. “But some consolidation is now expected while market awaits Jackson Hole and the beginning of a US rate cutting cycle.”
Along with expectations of rate cuts, gold’s rally has also been fueled by large purchases by central banks. The precious metal has also been supported by haven demand amid ongoing conflicts in the Middle East and Ukraine.
Spot gold fell 0.3% to $2,501.16 an ounce as of 10:49 a.m. in London. The Bloomberg Dollar Spot Index and US 10-year Treasury yields also dropped, as did palladium and platinum. Silver held steady.
“We see gold averaging $2,380 in the third quarter and prices peaking in the fourth quarter at $2,450/oz, resulting in an annual average of $2,301/oz.,” Ewa Manthey, a commodities strategist at ING Bank NV, wrote in a report on Friday.”
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