WASHINGTON (dpa-AFX) - Gold inched higher on Monday after Federal Reserve Chair Jerome Powell signaled the U.S. central bank is prepared to begin cutting interest rates at its next monetary policy meeting in September.
An escalation of hostilities along the Israeli-Lebanese border also boosted safe-haven demand for the non-interest paying asset.
Spot gold rose half a percent to $2,525.26 per ounce, while U.S. gold futures were up 0.6 percent at $2,561.15.
The dollar was under selling pressure and bond yields softened after Powell signaled imminent interest-rate cuts.
'The time has come for policy to adjust,' Powell said at the Jackson Hole Economic Symposium, although he noted the 'timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.'
Powell said inflation is now much closer to the Fed's objective, with consumer prices rising 2.5 percent year-over-year in July, and noted progress toward 2 percent has resumed after a pause earlier this year.
On the geopolitical front, Israel and Hezbollah traded heavy fire early on Sunday after a round of high-level talks in Cairo meant to bring about a ceasefire and hostage deal to temporarily end the 10-month Israel-Hamas war in Gaza ended without a final agreement.
In economic releases, U.S. durable goods orders for July and Dallas Fed manufacturing index for August may garner investor attention in the New York session.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
