By Noel John
(Reuters) -Gold prices edged up on Tuesday, supported by a softer dollar and Treasury yields, as investors hunkered down for Federal Reserve Chair Jerome Powell’s upcoming speech at Jackson Hole later this week.
Spot gold was up 0.2% at $3,335.24 per ounce by 09:38 a.m. ET (1338 GMT). U.S. gold futures for December delivery rose 0.1% to $3,380.10.
The dollar index fell 0.1% against its rivals, while benchmark 10-year yields also slipped. [USD/][US/]
“Generally, (traders are) positioning in the futures market ahead of the Jackson Hole meeting… it’s going to be pretty quiet up until then,” said Jim Wyckoff, senior analyst at Kitco Metals.
The Federal Reserve is set to hold its annual symposium later this week in Jackson Hole, Wyoming, with Fed Chair Jerome Powell scheduled to speak on the economic outlook and central bank’s policy framework on Friday.
U.S. President Donald Trump has continued to urge the Federal Reserve to pursue deeper rate cuts.
“My sense is that (Powell) might lean a little bit more dovish… that would be friendly for gold and silver prices,” Wyckoff said.
Non-yielding gold, traditionally considered a hedge during times of uncertainty, also tends to perform well in low-interest rate environments.
Traders see an 83% chance of a 25-basis-point Fed rate cut in September, according to CME’s FedWatch tool. [FEDWATCH]
Meanwhile, Trump said on Tuesday he hoped Russia’s Vladimir Putin would move toward ending the war in Ukraine.
On the data front, minutes from the Federal Reserve’s July meeting, set to be released on Wednesday, are expected to shed light on the U.S. economic outlook.
UBS on Monday raised its gold price target for end-March 2026 by $100 to $3,600 on persistent U.S. macroeconomic risks, a decline in dollar use, and strong investment demand.
Elsewhere, spot silver fell 0.1% to $37.98 per ounce, platinum was up 1.4% at $1,341.40, while palladium fell 0.1% to $1,122.32.
(Reporting by Noel John in Bengaluru; Editing by Sharon Singleton)
