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Gold slips as investors focus on the Fed path ahead of Jackson Hole

Bullion was still up 14% for the month, after Gold ETFs added more than 28 tons last week, the most since January.

Reported · Written up by our desk · Precious Metals

Gold eased back from a three-month high as traders shifted attention to the Federal Reserve’s interest rate outlook ahead of this week’s Jackson Hole symposium. Bullion inched lower to trade near $4,600 an ounce, while remaining up 14% for the month, according to LiveMint Markets.

The pullback came as traders digested last week’s unexpected US Treasury intervention in the bond market, which helped revive interest in the so-called debasement trade. The rally has also moved gold above its 200-day moving average, a level often watched for momentum.

LiveMint Markets reported that bullion-backed exchange-traded funds tracked by Bloomberg added more than 28 tons last week, the most since January, signaling broader participation. TD Securities analysts Ryan McKay and Bart Melek noted that precious metals are finding comfort in the current higher range, but they cautioned that the near-term upside could be limited by elevated energy prices and persistent inflation risks.

Investors are also looking for clues on inflation and the Fed’s approach, including a speech by Fed Governor Kevin Warsh and remarks from Fed Bank of Boston President Susan Collins, who supported holding rates steady if progress toward the Fed’s 2% inflation target continues. Traders are further positioning for the US Personal Consumption Expenditure Index due Wednesday, with gold last reported down 0.8% to $4,621.61 an ounce in London.

Latest closeGold $4,666.20 ▲0.6%

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