WASHINGTON (dpa-AFX) - Gold prices climbed on Friday as the dollar extended its recent sharp slide ahead of Federal Reserve Chair Jerome Powell's eagerly anticipated Jackson Hole speech later in the day that could offer fresh insights on the central bank's interest rate cuts plans this year.
Spot gold climbed 0.7 percent to $2,501.41 per ounce, while U.S. gold futures were up 0.8 percent at $2,537.05.
Powell may probably use the speech to prepare markets for a modest 25-bps rate cut in September, which is entirely priced in by markets.
Swaps pricing currently indicates three 25 basis point cuts across the remaining three Fed policy meetings this year.
Speaking to CNBC from the Fed's annual retreat in Jackson Hole, Wyoming, Philadelphia Federal Reserve President Patrick Harker on Thursday said the Fed should ease 'methodically and signal well in advance.'
Kansas City Fed President Jeffrey Schmid also leaned toward a cut ahead, noting he does not believe monetary policy is 'over-restrictive.'
Boston Fed President Susan Collins said in an interview with Fox Business that inflation has eased 'quite a lot', the labor market is healthy, and a gradual, methodical pace (of interest rate cuts) is likely to be appropriate.
On the geopolitical front, hopes dwindled for a ceasefire in the Gaza Strip as fighting raged on the ground in parts of Palestinian territory.
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