PRECIOUS-Gold falls as dollar firms; focus on Jackson Hole meeting
By Ishaan Arora
Aug 21 (Reuters) - Gold prices fell on Thursday, pressured by a firmer dollar, while investors looked to the U.S. central bank's annual Jackson Hole symposium later in the day for further policy cues.
Spot gold XAU= was down 0.5% at $3,331.74 per ounce, as of 1041 GMT. U.S. gold futures GCcv1 for December delivery also lost 0.4% to $3,373.70.
The U.S. dollar index .DXY was up 0.1%, making U.S. dollar-priced gold expensive for overseas buyers. USD/
"Global bond yields have ticked higher, and the dollar has firmed up a tiny bit, and both of these factors are helping to provide some light pressure on gold today.... the metal is continuing to consolidate, frustrating both the bulls and bears alike," said Fawad Razaqzada, market analyst at City Index and FOREX.com.
Fed Chair Jerome Powell is expected to speak on Friday at the August 21-23 Jackson Hole symposium, with investors watching whether he backs measures to bolster the labour market or focuses on curbing inflation.
The Fed has held rates steady since December, although investors expect a 79% chance of a quarter-point cut by September, according to the CME's FedWatch tool.
"There are growing expectations that the Fed Chair will signal a clear shift in policy on Friday... but whether the metal will head sharply higher to break $3400 resistance remains to be seen," Razaqzada added.
Non-yielding gold typically performs well in a low interest rate environment.
Minutes from the Fed's July meeting showed the policymakers who dissented against last month's decision to keep interest rates unchanged - Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller - were alone in advocating for a rate cut.
Meanwhile, U.S. President Donald Trump called on Fed Governor Lisa Cook to resign over allegations made by one of his political allies about mortgages she holds, intensifying his efforts to influence the central bank.
Spot silver XAG= was down 0.7% at $37.64 per ounce, platinum XPT= fell 1.5% to $1,318.18 and palladium XPD= shed 1.6% to $1,096.73.
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