WASHINGTON (dpa-AFX) - Gold prices fell on Tuesday as focus shifts towards the upcoming Jackson Hole summit, where the US Fed chair's insights on monetary policy will assume importance amid the inconclusive meeting between the US and Ukrainian presidents yesterday.
Front Month Comex Gold for August delivery decreased by $18.30 (or 0.55%) to $3,313.40 per troy ounce today.
Front Month Comex Silver for August delivery slumped by 69.00 cents (or 1.82%) to $37.261 per troy ounce today.
The Jackson Hole Economic Symposium in Wyoming, where central bankers and economists share insights on global economies, is scheduled to begin on August 21 and conclude on August 23.
As a rate cut is widely expected during the September 16-17 Federal Open Market Committee meeting, markets are looking forward to the keynote speech by Fed Chair Jerome Powell wherein signals on the Fed's plans on interest rates could be gathered.
Currently economists see around an 84% probability of a 25-basis-point rate cut at the Fed's next meeting, per the CME FedWatch tool.
Data released by the Commerce Department today revealed that building permits in the US fell by 2.8% to a seasonally adjusted annualized rate of 1.354 million in July.
Housing starts in the US surged by 5.2% from the previous month to a seasonally adjusted annualized rate of 1.428 million in July.
Treasury yields are lower than yesterday. The 10-year yield is at 4.315% and the two-year yield is at 3.751%.
Recent US economic data points, especially the higher-than-expected Producer Price Index, have rekindled fears of inflation and could reduce the likelihood of a rate cut, as higher interest rates can help combat rising prices.
On the geopolitical front, the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy at the White House went off smoothly yesterday but without any breakthroughs.
After the meeting, Trump announced that he is preparing for a face-to-face meeting between Russian and Ukraine presidents and after that a trilateral summit with himself involved.
Gold generally performs well in a low-interest-rate environment and amid heightened uncertainties.
The peace push by Trump has fueled the hopes of a possible end to the Russia-Ukraine war.
If the developments in the coming weeks indicate progress in peace talks, it could increase traders' risk-appetite and move them away from safe-haven assets.
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