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| Gold Price |
Gold price recovers as markets await dovish cues from Fed minutes and Jackson Hole symposium.
Gold price edged higher on Wednesday, recovering from recent losses as traders position ahead of key US monetary policy signals. Spot gold rose 0.8% to $3,341.56/oz, while US gold futures traded at $3,385.20/oz. The gold price outlook now hinges on upcoming comments from Fed Chair Jerome Powell at Jackson Hole.
Interest Rate Expectations Drive Gold Momentum
The US Federal Reserve’s July meeting minutes and Powell’s Friday speech are expected to shape near-term interest rate expectations. Earlier this month, gold price surged past $3,400/oz after the Fed held rates steady. Traders interpreted this as a potential pivot, with an 85% chance of a September rate cut now priced in.
If Powell signals dovish intent, gold could retest resistance levels near $3,400/oz. Because gold yields no interest, lower rates enhance its relative appeal. RJO Futures notes that traders are buying ahead of policy signals, viewing the recent pullback as a buying opportunity.
Safe-Haven Demand Remains Amid Geopolitical Risks
Meanwhile, geopolitical uncertainty continues to underpin gold price strength. Markets are closely watching diplomatic developments between Russia and Ukraine. A ceasefire may reduce safe-haven demand, but ongoing instability remains a supportive factor.
So far in 2025, gold has gained over 25%, driven by central bank demand, ETF inflows, and risk aversion. Although prices have stabilized since hitting a record near $3,500/oz in April, banks like UBS and Citigroup maintain a bullish long-term gold price outlook.
ScrapInsight Commentary
Gold’s sustained strength reflects a complex macro environment combining monetary policy uncertainty and geopolitical risk. If US rates decline, bullion demand from institutional investors and central banks could accelerate. For recyclers and refiners, high prices may boost scrap gold supply in the secondary market over the coming quarters.
