Gold prices were stable during the Asian session on Monday (August 25th), driven by a strengthening US dollar, but Powell's dovish signals at Jackson Hole kept downside risks limited. Expectations of a Fed rate cut in September lowered the opportunity cost of holding gold, although Powell warned that inflationary pressures were still trending upward and the labor market was starting to weaken. Meanwhile, Russia-Ukraine tensions added to the hedging bid for gold. Going forward, the direction of XAU/USD is likely to be determined by US dollar dynamics and US inflation/employment data: a...
Silver prices (XAG/USD) weakened on Monday (August 25th), hovering around $38.749 per troy ounce after a three-day rally. This weakening was in line with the slight strengthening of the US dollar, which made the USD-denominated precious metal less attractive to foreign investors. However, strong expectations for a Federal Reserve interest rate cut next month continue to provide fundamental support, as silver, along with gold, tends to strengthen in low interest rates. On the demand side, industrial fundamentals also support silver prices, particularly due to increasing demand from the...
Gold prices have the potential to gain support this morning following news of US President Donald Trump's removal of Federal Reserve Governor Lisa Cook. This action raises uncertainty regarding the direction of the Fed's monetary policy, as Trump's move is seen as an attempt to expand his influence over the central bank. Political uncertainty and the risk of intervention in the Fed's independence typically drive investors to seek safe-haven assets, including gold, to cushion price declines or even drive gains in early trading. Furthermore, market expectations for a Fed interest rate cut...