Gold climbs to fresh record high with focus on Jackson Hole symposium

NEW YORK, 20th August, 2024 (WAM) -- Gold resumed its rally to hit another record high as traders focus attention on comments from Federal Reserve Chair Jerome Powell due later this week.

Bloomberg reported that bullion climbed above US$2,520 an ounce Tuesday, after falling slightly in the previous session. Powell is set to speak Friday at the annual Jackson Hole symposium in Wyoming, where his comments will be closely analysed for clues about the central bank's thinking on widely expected cuts to interest rates.

Traders will also be monitoring other US reports due this week, including jobless claims figures on Thursday, which could play into the Fed's plans. Lower rates are often seen as positive for non-interest bearing gold.

The precious metal has surged more than 20 percent so far this year. Along with expectations of rate cuts, the rally has been helped by robust purchasing by central banks. It has also been supported by haven demand amid ongoing conflicts in the Middle East and Ukraine.

"Gold remains in record-setting mode ahead of Powell's Jackson Hole speech on Friday," said Ole Hansen, head of commodity strategy at Saxo Bank A/S. "With the dollar and yields not providing much inspiration today, the main driver is the current positive momentum and limited selling appetite basically leaving the path of least resistance to the upside."

Still, there are signs that gold's stellar run may now be weighing on demand in China, after a report showed last month's imports fell to the lowest since May 2022.

Spot gold rose 0.7 percent to US$2,521.51 an ounce by 10:04 in London. The Bloomberg Dollar Spot Index slipped further, while US 10-year Treasury yields were broadly steady. Palladium, platinum and silver also gained.