Gold Prices Rise Amid Caution Before Powell’s Speech

Gold prices increased during Asian trading on Friday, recovering slightly from recent record highs amid cautious sentiment ahead of Federal Reserve Chair Jerome Powell’s address.

The yellow metal soared to record levels earlier in the week, fueled by speculations that the Fed might start cutting interest rates from September. Despite some profit-taking that led to a slight retreat, gold remained in demand.

• Spot gold rose by 0.4% to $2,495.52 an ounce.
• Gold futures for December increased by 0.6% to $2,530.70 an ounce.
• Spot prices were down slightly this week after hitting a record high of $2,531.72.

Powell’s Address and Rate Cut Speculation

Powell’s upcoming speech at the Jackson Hole Symposium is anticipated to provide insights into the Fed’s potential plans for interest rate adjustments. The market is generally forecasting a rate cut in September, with some traders divided on whether the reduction will be 25 or 50 basis points.

Recent labor data revisions have intensified debates about a slowing U.S. economy, further strengthening the case for a deeper rate cut. Concerns about economic slowdown and lower interest rates typically favor gold, as it acts as a safe haven. Lower rates also reduce the opportunity cost for purchasing bullion.

Other Precious Metals and Industrial Metals

Other precious metals also experienced gains, although their weekly performance has been mixed.
– Platinum futures rose 0.7% to $959.75 an ounce.
– Silver futures increased 0.9% to $29.290 an ounce.

Copper Prices Trend Upward

Amid industrial metals, copper prices have risen, marking their second consecutive week of gains, recovering from earlier August lows.
– Copper futures on the London Metal Exchange climbed 0.8% to $9,204.50 a ton.
– One-month copper futures rose 0.7% to $4.1655 a pound.

The rise in copper prices has been supported by bargain buying and improved market sentiment towards China, the top importer. Market expectations of lower U.S. interest rates are believed to also enhance global copper demand.