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Gold firms as dollar eases in run-up to Jackson Hole event

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Gold rose on Thursday as the dollar

slipped from recent highs, while investors awaited the Jackson

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Hole symposium for cues on the Federal Reserve’s monetary

policy.

Spot gold rose 0.3% to $1,756.55 per ounce by 14:20

p.m. ET.

U.S. gold futures settled 0.6% higher at $1,771.4.

Focus will be on U.S. Federal Reserve Chair Jerome Powell’s

speech at the central banks’ conference in Wyoming on Friday for

hints on the Fed’s interest rate hike strategy.

“Gold is just seeing a corrective bounce from recent selling

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pressure. The dollar has backed off from its highs and there is

some positioning ahead of Powell’s speech,” said Jim Wyckoff,

senior analyst at Kitco Metals.

“In the near term, gold charts are still bearish. But in the

longer-term, there is still upside potential for gold as there

will be some safe-haven demand any time the economy is wobbly.”

The dollar index fell 0.2%, making gold cheaper for

overseas buyers.

Gold is considered a safe investment amid economic

turbulence. However, interest rate hikes increase the

opportunity cost of holding bullion.

Investors also took stock of data showing the U.S. economy

contracted at a moderate pace than initially thought in the

second quarter.

In the physical market, top consumer China’s net gold

imports via Hong Kong hit a nine-month high in July.

Spot silver rose 0.2% to $19.19 per ounce, platinum

gained 0.3% to $879.11 per ounce.

Palladium bounced 5.4% to $2,144.07 per ounce.

UBS raised its palladium price outlook on “renewed robust

imports by China,” forecasting prices at $1,900 per ounce in

December, but retained a negative outlook on the metal over

slowing growth in Europe and North America.

(Reporting by Ashitha Shivaprasad and Rahul Paswan in

Bengaluru; Editing by Krishna Chandra Eluri and Vinay Dwivedi)



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