Traders Hold Gold at $3,320 Before Powell Speaks on Rates

The price of gold steadied near $3,320 per ounce on Wednesday with traders looking to Jerome Powell’s Jackson Hole address for signals on the Fed’s next step. The annual gathering of central bankers has often shaped monetary policy expectations, and this year’s remarks are being closely watched for signals on whether rate cuts are on the horizon.

Market participants remain divided. A quarter-point reduction in September is still seen as a strong possibility, but last week’s firmer-than-expected inflation report has complicated the outlook. The Federal Reserve faces the challenge of providing support for economic growth while ensuring inflation does not regain momentum. That dilemma has left investors looking to Powell’s tone for clarity.

Political pressure has added further complexity. President Donald Trump has publicly urged the Fed to deliver deeper cuts to cushion the impact of tariffs, which are now at their highest levels in a century. Powell, however, has suggested that the central bank must tread carefully rather than yield to short-term pressures. For gold, the stakes are clear: lower rates typically enhance its appeal because bullion offers no yield, making it more competitive when borrowing costs fall.

Global uncertainties have also played a role in shaping demand. Renewed diplomatic efforts aimed at arranging talks between Russian and Ukrainian leaders have sparked speculation about a possible ceasefire. While any progress could temper safe-haven buying, investors remain doubtful about the chances of a near-term resolution, which has kept gold attractive as a defensive asset.

The precious metal has been one of the year’s strongest performers, rising more than 25 percent in 2025. The rally has been underpinned by persistent central bank purchases, steady inflows into gold-backed funds, and a global search for stability amid trade tensions and currency volatility. After touching record highs close to $3,500 per ounce in April, prices have since settled into a holding pattern, waiting for a new catalyst.

Analysts expect Powell’s upcoming address to be the key driver for gold’s next move. A dovish signal could weaken the dollar and push bullion toward retesting its peak, while a cautious stance may keep it confined within its recent range. In other metals trading, silver and palladium eased, while platinum posted a modest advance.

Also Read: Gold Drops to $3,353 After Weak US Jobs Data Raises Odds of September Rate Cut