(Reuters) – Gold was little changed on Thursday as investors awaited cues on the Federal Reserve’s policy outlook ahead of its annual Jackson Hole symposium, which starts later in the day.
Spot gold was down 0.2% at $3,338.89 per ounce, as of 0603 GMT. U.S. gold futures for December delivery also lost 0.2% to $3,381.20.
The U.S. dollar index rose 0.1%, making greenback-back priced gold expensive for overseas buyers.
Fed Chair Jerome Powell is expected to speak on Friday at the August 21-23 event, with investors watching whether he backs measures to bolster the labor market or focuses on curbing inflation.
“We don’t think gold prices are going to rise significantly and believe they are consolidating at the moment,” said Brian Lan, managing director, GoldSilver Central.
“Even if interest rates are cut slightly, we might see a slight uptick in gold prices, and…the $3,400 mark is possible. If not, then prices may continue to consolidate or possibly notch a little lower, closer to $3,300,” Lan added.
Last month, Fed officials Michelle Bowman, vice chair for supervision, and Governor Christopher Waller voted for a quarter-point rate cut to address job market weakness, but their stance lacked broader support.
The Fed has held rates steady since December, with investors expecting an 85% chance of a quarter-point cut in September, according to the CME’s FedWatch tool.
Gold typically performs well in a low interest rate environment and during times of heightened uncertainty.
In politics, President Trump called on Fed Governor Lisa Cook to resign over alleged issues related to her mortgages in Michigan and Georgia, intensifying efforts to gain influence over the central bank.
Elsewhere, Russia said attempts to resolve security issues relating to Ukraine without Moscow’s participation were a “road to nowhere”.
Spot silver was down 0.1% at $37.86 per ounce, platinum fell 0.6% to $1,332.30 and palladium shed 0.5% to $1,108.26.
(Reporting by Anmol Choubey in Bengaluru; Editing by Sumana Nandy, Rashmi Aich and Sonia Cheema)
