Treaded Water Ahead Of Fed Chair Powell’s Speech At Jackson Hole

Gold is slightly weaker in the Asia-Pac session, after closing +0.1% at $1916.91 on Thursday. The resilience of bullion was surprising considering the renewed push higher in the USD index and higher US tsy yields.

• Possibly supporting the precious metal was news that the Polish central bank made its largest gold purchase in four years in July, boosting its share to more than a tenth of reserves.
• As a result, gold is on track for its first weekly gain in five ahead of a key speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium in Wyoming, where he’s expected to offer clues on the interest-rate outlook.
• Prior to the Jackson Hole symposium, Fedspeak on Thursday conveyed a blend of perspectives. Taking a more hawkish stance, Boston Fed's Collins emphasised the prudence of maintaining elevated rates for an extended duration, underlining the potential necessity for further adjustments. Collins stated, "A preset path may not be conducive; additional increments might be necessary, and we could be on the cusp of a prolonged period of stability."
• Conversely, Philly Fed's Harker indicated to MNI that he leans towards endorsing the maintenance of prevailing interest rates until the conclusion of the year and potentially even beyond.