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Gold slightly weaker in Asia as investors await Jackson Hole

Published 23/08/2017, 02:26 pm
© Reuters.  Gold dips in Asia
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Investing.com - Gold prices dipped in Asia on Wednesday as investors turned cautious ahead of a meeting of central bankers this week in Jackson Hole, Wyoming, that may provide fresh cues on interest rates and unwinding stimulus efforts.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 0.02% to $1,290.78 a troy ounce.

Overnight, gold prices fell on Tuesday, following a rebound in the dollar, as traders remained wary of initiating large positions in the yellow metal ahead of a two-day central banking symposium later this week.

Gold’s attempt to breach $1,300 failed on Tuesday, as the precious metal fell close to one-week lows, after a dip in U.S-North Korea tensions eased safe-haven demand while traders shifted attention to an upcoming symposium of central bankers slated for Thursday which could provide clues on monetary policy changes.

Gold prices have ebbed and flowed ahead of the symposium of central bankers in Jackson Hole, which includes speeches by European Central Bank president Mario Draghi and Federal Reserve chair Janet Yellen.

European Central Bank president Mario Draghi is expected to remain tightlipped on future monetary policy to avert a bullish reaction in the euro amid the central bank concerns over the sharp rise in the single currency.

The ECB’s July policy meeting minutes revealed officials warned that the recent surge in the euro could hamper the central bank’s efforts to get inflation closer to its target of below, but close to, 2%.

Analysts, however, expect the yellow metal to resume its move higher as the symposium draws closer.

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