Gold market awaits important economic data

Spot gold was almost unchanged at $1,914.99 an ounce this afternoon, as the dollar index hovered near a 12-week high. US gold futures edged up 0.1% to $1,942.40 an ounce.

Speaking at the annual meeting in Jackson Hole, Wyoming last weekend, Mr. Powell left open the possibility that the Fed would continue to raise interest rates to cool inflation that is still too high and emphasized the incredible strength of the US economy.

“Market participants were anticipating Powell’s hawkish stance, which took some of the surprise out of the Fed Chairman’s speech,” said Yeap Jun Rong, market strategist at financial brokerage IG Singapore. “However, there is still much to be seen for a sustained recovery in gold prices as concerns about rising inflation and the US economic recovery translate into expectations for a Fed rate hike in November.”

Cleveland Fed President Loretta Mester recently said that curbing inflation may require the U.S. to raise interest rates again. Higher interest rates mean less demand for gold.

“While Powell’s comments did not result in any further increases in US Treasury yields, they remain at historic highs and therefore continue to act as a headwind for gold,” said Tim Waterer, chief market analyst at financial trading platform KCM Trade.

A slew of important economic data is due this week, including US core inflation and the August 2023 jobs report. These figures could provide a clearer picture of the strength of the US economy.

Also in this session, spot silver price decreased 0.4% to 24.14 USD/ounce. Platinum price decreased 0.2% to 943.12 USD/ounce, while palladium price increased 0.1% to 1,222.86 USD/ounce.

In Vietnam, on the afternoon of August 28, the price of SJC gold in the Hanoi market was listed by Saigon Jewelry Company at 67.50 - 68.12 million VND/tael (buy - sell).