Gold makes a rebound before the Jackson Hole meeting

Published on Aug 24, 2023 14:18

Gold futures bounced back above $1950 an ounce in the mid Asia electronic trades today, with weakness in US dollar lending further support to the metal. Investors are focusing on the Jackson Hole meeting for signals about interest rates from central bankers, especially Chair Jerome Powell`s speech.

The Federal Reserve`s annual symposium in Jackson Hole, Wyoming, scheduled from August 24-26, has investors awaiting Chair Jerome Powell`s speech on Friday. They seek confirmation about the potential duration of higher interest rates.

COMEX gold futures most active contract was last seen trading at $1949.10 up $1 per ounce after ending up by more than 1% in yesterday’s session. Meanwhile the silver futures jumped more than 4%. yesterday MCX gold for October delivery jumped to near Rs 58900 levels and was last seen trading at Rs 58833 up Rs 14 per 10 grams.

The rally came as dollar weakened post weaker-than-expected business activity in major economies, raising hopes that central banks would pause interest rate hikes to prevent a recession. US business activity barely grew in August, while the Eurozone and UK remained in contraction.