Gold rises as markets assess impact of US interest rate path

Gold prices rose Monday, August 28, despite US Federal Reserve Chairman Jerome Powell’s statements about the possibility of further rate hikes, as markets seek indications through economic data this week to draw a clearer picture of the path of interest rates.

Spot gold rose 0.1% to $1,915.99 an ounce by 05:49 GMT, with the dollar index giving up a 12-week peak. US gold futures rose 0.2% to $1,943.80.

Speaking at an annual symposium in Jackson Hole, Wyoming, on Friday, Powell left open the possibility of more rate hikes to bring down still-very high inflation, citing the surprising strength of the US economy.

Higher interest rates would reduce demand for the non-yielding precious metal.

A series of economic data this week, including the US core PCE price index and the Nonfarm Payroll report, is likely to provide a clearer picture of the economy’s strength.

As for other precious metals, silver fell in spot transactions by 0.2%, to $24.17 an ounce, and platinum, by 0.1%, to $944.06. Palladium rose 0.5% to $1,230.74.