Gold stays range-bound with investors watching Fed outlook

KARACHI: Gold prices held largely steady on Thursday as investors waited for policy signals from the US Federal Reserve ahead of its annual Jackson Hole symposium.

By 0603 GMT, spot gold slipped 0.2 percent to $3,338.89 per ounce, while US gold futures for December delivery also eased 0.2 percent to $3,381.20. The slight dip came as the US dollar index inched up 0.1 percent, making dollar-priced bullion more expensive for overseas buyers.

Investors watch Fed signals

All eyes are now on Fed Chair Jerome Powell, who is expected to speak at the August 21–23 gathering on Friday. Markets are keen to see whether the Fed prioritises support for the labour market or stays focused on controlling inflation.

“Gold prices look to be consolidating for now,” said Brian Lan, managing director at GoldSilver Central. “Even with a small rate cut, we may only see prices inch up toward $3,400. If not, they could drift closer to $3,300.”

The Fed has held rates steady since December, though traders see an 85 percent chance of a quarter-point cut in September, according to the CME’s FedWatch tool. Some Fed officials, including Governor Christopher Waller and Vice Chair Michelle Bowman, had supported a small cut last month, but the move did not gain wider backing.

Gold tends to benefit in periods of lower interest rates and heightened uncertainty.

Political backdrop and global tensions

Adding to the political noise, US President Donald Trump urged Fed Governor Lisa Cook to step down over alleged mortgage issues, escalating efforts to sway central bank leadership. Meanwhile, Russia warned that attempts to address Ukraine’s security without Moscow’s involvement would be a “road to nowhere.”

Other precious metals also dipped, with silver down 0.1 percent at $37.86 per ounce, platinum falling 0.6 percent to $1,332.30, and palladium sliding 0.5 percent to $1,108.26.

Gold prices in Pakistan

In Pakistan, gold prices followed the international market trend this week. On Monday, August 18, the per tola rate climbed by Rs1,500 to close at Rs357,700. The momentum, however, shifted in the next two sessions.

On Tuesday, prices slipped by Rs1,100 to Rs356,600 per tola, while on Wednesday they dropped further by Rs1,400 to Rs355,200. The rate for Thursday is yet to be announced by the All-Pakistan Gems and Jewellers Sarafa Association.

With investors worldwide awaiting Fed Chair Jerome Powell’s remarks, both global and local bullion markets are expected to see fresh movement in the coming days.

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