FX.co ★ Gold Extends Losses

Gold continued its decline, settling at approximately $3,330 per ounce on Friday, as it maintained stability within a narrow band. Investors exercised caution, hesitant to make significant moves pending Federal Reserve Chair Powell's address at the Jackson Hole symposium, expected to provide insights into the U.S. policy direction. The preceding day, Federal Reserve officials offered scant indication of endorsing a rate cut in the forthcoming month, directing market focus to Powell's forthcoming commentary for further guidance. This comes amidst observable signs of a slowdown in the labor market while inflation remains persistently above target levels and faces risks related to tariffs. Despite this uncertainty, investors still anticipate the possibility of policy easing, with a 75% probability of a quarter-point rate cut being factored into market expectations for September. In geopolitical developments, optimism for a prospective Russia-Ukraine peace agreement has waned, following reports of Russia executing its most extensive drone and missile assault on Ukraine in over a month, alongside Moscow's accusations of Kyiv spurning a "lasting and fair settlement" proposal. Consequently, gold is on track to conclude the week with minimal change in its value.