Gold Prices Rise as Yields Retreat and Dollar Rebounds; Investors Focused on Jackson Hole Symposium
Gold futures extended gains for the third consecutive session on Tuesday, supported by a drop in yields on 10-year U.S. Treasury Notes from their recent high and a recovery in the dollar. The precious metal found some relief as yields fell to 4.301% before bouncing back to around 4.315%. The dollar’s rebound from lower levels, however, limited the upside potential for gold.
The dollar index, which had dipped to 103.01 during the Asian session, rebounded to 103.72 around mid-morning. Despite paring some of its gains afterward, it remained positive at 103.54 with a gain of almost 0.25%. Gold futures for December closed higher by $3.00, or about 0.2%, at $1,926.00 an ounce.
Meanwhile, silver futures for September settled up $0.110 at $23.450 per ounce, while copper futures for September settled at $3.7570 per pound, gaining $0.0385.
Investors are now closely watching the symposium that is set to take place at Jackson Hole in Wyoming. The symposium will feature meetings with global central bank leaders and a highly anticipated speech by Federal Reserve Chair Jerome Powell, which could have a significant impact on the outlook for interest rates.
The CME FedWatch tool currently indicates a 15.5% probability of a 25 basis point rate hike in the upcoming September 20 review, compared to 14% the previous day. However, the probability for a quarter-point rate hike in November is slightly higher at 39.9%, up from 38% the previous day.
On the U.S. economic front, the National Association of Realtors (NAR) recently released a report revealing a larger-than-expected slump in existing home sales for the month of July. NAR reported that existing home sales fell by 2.2% to an annual rate of 4.07 million in July, following a 3.3% plunge to an annual rate of 4.16 million in June. Economists had anticipated a slight decline to an annual rate of 4.15 million.
This decline marks the fourth time in the past five months that existing home sales have decreased, reaching their lowest annual rate since January when they hit 4.00 million.
Investors are closely monitoring these developments in both the financial markets and the housing sector as they prepare for potential shifts in monetary policy and their implications for the broader economy.
Disclaimer: This information should not be construed as investment advice or guidance. It is for informational purposes only and does not constitute an offer or solicitation to buy or sell any investment or financial products. Please consult with a qualified financial advisor before making any investment decisions.
