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Gold edges down amid anticipations for Fed head’s speech

Gold edges down amid anticipations for Fed head’s speech

Mubasher: Gold prices declined on Friday, hovering near the key $1,500 per ounce level, against a backdrop of trade uncertainties, according to Reuters.

By 8:44 am GMT, spot gold inched down by 0.10% to $1,496.56 per ounce, while US gold futures fell by 0.18% to $1,505.80 per ounce.

This came as investors were awaiting a speech by the US Federal Reserve Chairman Jerome Powell at the Jackson Hole conclave, due later in the day on future US monetary policy. Minutes from the US central bank’s July meeting toned down hopes of aggressive rate cuts.

US funds futures are already fully priced for a quarter-point rate cut next month.

Hawkish comments by two Fed officials, who saw no need currently for more stimulus to boost the US economic growth, clouded expectations of further US monetary policy easing.

Meanwhile, the two-year, 10-year Treasury yield curve returned briefly into inversion overnight, after the alarm was raised about a recession on the horizon for the first time since before the financial crisis.

Moreover, market participants were anticipating the Group of Seven (G7) summit this weekend for signals on what further measures could be taken by policymakers to stimulate economic growth.

In China, restrictions were lifted to some extent on imports of the yellow metal, industry sources told Reuters. Such restrictions prevented the entry of a range from 300 to 500 tonnes of gold, the value of which ranges between $15 billion and $25 billion.