FX.co ★ Gold Approaches Three-Week Low

Gold prices dipped to approximately $3,310 per ounce on Wednesday, nearing a three-week low due to reduced geopolitical tensions and an appreciating US dollar. This movement occurs as investors anticipate the Federal Reserve’s Jackson Hole symposium. On Tuesday, US President Trump stated that while ground troops would not be sent to Ukraine, there remains a possibility of offering air support to help resolve the conflict with Russia. This development was positively received by Ukraine's President Zelenskiy, who regarded the talks as a significant step towards ending the ongoing war and potentially opening negotiations with Russian President Putin. Attention now shifts to Fed Chair Powell’s upcoming address at the symposium, where market participants will be looking for indicators of the central bank’s future policy strategy. Additionally, the release of the latest FOMC meeting minutes later today is anticipated to shed further light on this matter. Current market expectations are aligned with two 25-basis-point rate cuts within the year, with the first possibly being implemented in September.