Gold rebounds after recent lows
Gold prices rose 0.9% on Wednesday to $3,344.37 per ounce, boosted by a weakening U.S. dollar. The market reacted to the Federal Reserve’s July meeting minutes, which showed that only two officials favored a rate cut. Traders largely dismissed the news as outdated, since weaker-than-expected job data emerged shortly after the meeting.
The U.S. dollar lost strength, making gold more attractive to international buyers. Meanwhile, U.S. gold futures settled at $3,388.50, recovering from lows seen earlier this month.
All eyes on Powell’s Jackson Hole speech
Markets are now focused on Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole economic symposium this Friday. A dovish tone could send gold above the $3,350 resistance level, potentially retesting $3,400, according to analysts.
Traders are pricing in an 83% probability of a quarter-point rate cut in September, based on data from the CME FedWatch tool. This supports gold’s appeal as a non-yielding safe-haven asset in a low-rate environment.
Trump ramps up pressure on the Fed
Adding to market tensions, President Donald Trump called for the resignation of Fed Governor Lisa Cook over mortgage-related allegations. This move intensifies his push to influence the central bank’s leadership and could heighten uncertainty around future monetary policy decisions.
Meanwhile, Goldman Sachs reaffirmed its bullish mid-2026 gold forecast of $4,000 per ounce, citing strong central bank demand, ETF inflows driven by Fed easing, and a 30% chance of U.S. recession within the next year.
Other metals post gains
Silver rose 1.1% to $37.78 per ounce, platinum climbed 2.1% to $1,333.43, and palladium remained steady at $1,115.15. Precious metals broadly benefited from expectations of lower interest rates and a softer dollar.
With growing macroeconomic uncertainty and potential Fed dovishness, gold and its peers are regaining investor favor as hedges against volatility and currency risk.
