PRECIOUS-Gold firms as dollar weakens, focus on Jackson Hole
By Ashitha Shivaprasad
Aug 20 (Reuters) - Gold rose on Wednesday as the U.S. dollar eased, with market participants bracing for the upcoming Jackson Hole symposium, while minutes revealed that Federal Reserve dissenters appeared alone in favoring a rate cut at the July meeting.
Spot gold XAU= gained 0.9% to $3,344.37 per ounce, by 2:23 p.m. EDT (1823 GMT) after hitting its lowest level since August 1 earlier. U.S. gold futures GCcv1 closed 0.9% higher at $3,388.50.
The two Federal Reserve policymakers who dissented against last month's decision to keep interest rates unchanged - Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller - appeared to be alone in advocating for a rate cut, a readout of the gathering released showed.
Within 48 hours of the meeting's conclusion, weaker-than-expected jobs data seemed to validate their concerns.
"Traders are shrugging this off as they view this news as stale as it came before the shocking employment report," said Tai Wong, an independent metals trader.
Market spotlight shifted to Fed Chair Jerome Powell's speech at the annual Jackson Hole economic symposium on Friday.
"If Powell is dovish, it's bullish for gold, as it does not bear interest. It will need to break through $3,350/oz and then ultimately retest $3,400/oz if he's dovish," said RJO Futures market strategist Bob Haberkorn.
Traders currently expect an 83% chance of a quarter-point rate cut in September, according to the CME FedWatch tool.
Goldman Sachs maintained its $4,000/toz mid-2026 forecast, citing structurally strong central bank demand, ETF inflows supported by Fed easing, and a 30% probability of a U.S. recession within 12 months.
Meanwhile, U.S. President Donald Trump called on Federal Reserve Governor Lisa Cook to resign over mortgage allegations, intensifying his effort to gain influence over the U.S. central bank.
Among other metals, spot silver XAG= rose 1.1% to $37.78 per ounce, platinum XPT= gained 2.1% to $1,333.43 while palladium XPD= steadied at $1,115.15.
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