Gold Falls On Fed Chair Powell's Remarks

CHICAGO, (UrduPoint / Pakistan Point News - 26th Aug, 2023 ) :Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as investors reacted to Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium in the U.S. state of Wyoming.

The most active gold contract for December delivery fell 7.20 U.S. dollars, or 0.37 percent, to close at 1,939.90 Dollars per ounce.

In his speech Friday, Powell acknowledged the sticky nature of inflation, hinting further rate hikes were not off the table, and the Federal Reserve intends to hold policy at a restrictive level until it is confident that inflation is moving sustainably down toward its 2 percent objective.

Powell sees "cloudy" economic data, saying he would proceed carefully.

The comments increased the likelihood of a rate hike at the next Federal Open Market Committee (FOMC) meeting in September, dampening gold.

Joining the "Squawk on the Street" discussion, Cleveland Federal Reserve President Loretta Mester noted Friday that core inflation is still too high, persisting above 4 percent, "we probably have more work to do."The Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers fell to 69.5 in the August 2023 survey, down from 71.6 in July and above last August's 58.2.

Silver for September delivery rose 0.40 cents, or 0.02 percent, to close at 24.234 dollars per ounce. Platinum for October delivery