Gold Near 15-Week High Ahead of Jackson Hole Sessions

Those gains are being curbed by the rise of the U.S. dollar against a basket of global currencies, especially after U.S. personal consumption expenditures data reinforced expectations of a Federal Reserve rate hike before the end of the year.

U.S. Commerce Department data showed that the Personal Consumption Expenditures (PCE) price index — the Federal Reserve’s preferred inflation gauge — rose 3.7% year‑over‑year in July, surpassing the 3.6% forecast and matching the June reading.

U.S. rates – according to the CME Group’s FedWatch tool: the probability of the Federal Reserve leaving rates unchanged at the September meeting is currently priced at 64%, while the odds of a 25‑basis‑point hike are at 36%.

Jackson Hole will kick off the annual Jackson Hole Economic Policy Symposium later today, with most major central bank governors and heads slated to deliver speeches tomorrow (Friday), led by Federal Reserve Chair Kevin Warsh.

Gold outlook according to FXNewsTody: If the dollar continues to rise against a basket of currencies, gold prices could lose their gains and move into negative territory, pulling back from the 15‑week highs.

The SPDR Gold Trust, the world’s largest physically‑backed gold ETF, saw its holdings fall by about 2.85 metric tons on Wednesday – its second consecutive daily decline – bringing the total down to 1,045.50 metric tons.