Gold prices eased during Friday's Asian trade as investors awaited a pivotal speech from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, with the United States dollar holding firm on strong economic data and waning expectations for a September rate cut.
By 3:25 pm AEST (5:25 am GMT), spot gold slipped $10.78, or 0.3%, to US$3,327.87 per ounce.
The U.S. dollar consolidated recent gains, trading at two-week highs against major peers and keeping bearish pressure on gold.
The Greenback’s strength was supported by a series of upbeat U.S. data releases that prompted markets to temper expectations for imminent policy easing.
U.S. existing home sales rose to 4.01 million in July, above the 3.92 million expected, rebounding 2% on the month after a 2.7% drop in June.
Meanwhile, S&P Global’s manufacturing and services purchasing managers' indexes (PMIs) beat market forecasts, coming in at 53.3 and 55.4, respectively.
In response, markets pared back the probability of a September Fed rate cut to 75%, down from 85% before the PMI release, according to the CME Group FedWatch Tool.
Attention now turns to Powell’s remarks at Jackson Hole, where he is expected to maintain a cautious approach to policy easing.
His comments are likely to influence rate expectations, the dollar’s trajectory, and near-term volatility in gold.
