Gold prices rebounded on Wednesday as the U.S. dollar eased, with investors closely watching for signals from the Federal Reserve’s latest policy meeting minutes and the upcoming Jackson Hole symposium on the direction of interest rates.
Spot gold rose 0.8% to $3,341.50 per ounce by 11:37 a.m. EDT (1537 GMT), recovering after hitting its lowest level since August 1. U.S. gold futures climbed by the same margin to $3,386.10 per ounce. The softer dollar made dollar-denominated bullion more affordable for buyers using other currencies, lending further support to the precious metal.
The Federal Reserve is set to release minutes from its July policy meeting at 2:00 p.m. EDT on Wednesday, two days before Chair Jerome Powell delivers his highly anticipated address at the annual Jackson Hole economic symposium. Markets are hoping for clarity on whether the central bank will move toward rate cuts later this year.
At its July meeting, the Fed chose to hold interest rates steady, though two policymakers dissented, arguing that a rate cut was needed to protect against further weakness in the U.S. job market.
“Gold prices fell yesterday, so now traders are looking at it as an opportunity to get into gold ahead of the Fed minutes,” said Bob Haberkorn, market strategist at RJO Futures. “If Powell is dovish, it’s bullish for gold, as it does not bear interest. Gold will need to break through $3,350 and then ultimately retest $3,400 per ounce if he leans dovish.”
According to the CME FedWatch tool, traders are currently pricing in an 85% chance of a quarter-point rate cut in September, reflecting heightened expectations that the Fed may soon pivot to easing.
Political developments also weighed on market sentiment. U.S. President Donald Trump called for the resignation of Federal Reserve Governor Lisa Cook, intensifying his attempts to influence the central bank. The demand followed allegations raised by one of his allies concerning mortgages Cook holds in Michigan and Georgia.
Looking further ahead, Goldman Sachs reaffirmed its bullish outlook on gold, projecting prices could reach $4,000 per ounce by mid-2026. The bank cited robust demand from central banks, renewed inflows into gold-backed exchange-traded funds driven by potential Fed easing, and a 30% chance of a U.S. recession within the next year.
Other precious metals also gained. Spot silver rose 1.1% to $37.76 per ounce, platinum advanced 2.5% to $1,338.39, while palladium slipped 0.6% to $1,108.59.
With gold positioned near key resistance levels, traders now await Powell’s speech at Jackson Hole, which could set the tone for global markets in the months ahead.
