Gold lost momentum during Thursday's Asian session, with the precious metal retreating from the US$3,350 resistance level as investors turned cautious ahead of key United States data and central bank commentary.
By 3:15 pm AEST (5:15 am GMT), spot gold was down 0.3% at $3,338.45 per ounce.
The U.S. dollar consolidated gains after the release of the Federal Reserve’s July meeting minutes late Wednesday (Thursday AEST), which revealed that only two policymakers had supported a rate cut.
That provided temporary support to the Greenback, keeping gold under pressure.
However, traders noted that the Fed minutes predated both July’s labour market and inflation data, with markets now pricing in two interest rate cuts by year-end.
That left investors awaiting Thursday’s release of preliminary S&P Global Manufacturing and Services purchasing managers' index (PMI) data for August to assess the health of the U.S. economy and the Fed’s likely path.
The focus remains on Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium. Markets expect him to push back against aggressive rate-cut bets while maintaining a cautious stance on inflation risks, particularly amid uncertainty over the impact of new U.S. tariffs announced by President Donald Trump.
Political pressure on the Fed also weighed on sentiment. The U.S. dollar briefly sold off on Wednesday after Trump called on Fed Governor Lisa Cook to resign, accusing her of financial disclosure violations.
Cook rejected the claims, saying, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.”
The renewed spotlight on the Fed’s independence had earlier provided a tailwind for gold, which is traditionally seen as a safe haven in times of political and monetary uncertainty.
Looking ahead, the combination of Thursday’s PMI data and Powell’s Jackson Hole remarks is expected to set the near-term direction for both the dollar and gold.
