On August 20th, gold prices hit a three-week low, with other precious metals, including silver, also becoming cheaper. Investors appeared cautious amid a strengthening dollar and ahead of Federal Reserve Chairman Jerome Powell's address. However, analysts believe that potential interest rate cuts and a weaker dollar could drive gold prices higher in the future.
Gold Price Today: On Wednesday, August 20th, gold and silver prices witnessed a decline in the international market. Investors adopted a cautious stance due to the strengthening dollar and ahead of Federal Reserve Chairman Jerome Powell's annual address in Jackson Hole, Wyoming, this week. Gold fell to a three-week low, while the prices of silver, platinum, and palladium also decreased. Gold on COMEX fell by 0.04% to $3357.20 per ounce, and silver declined by 0.42% to $37.175 per ounce. However, experts predict that gold prices may rise in the coming times.
Dollar Strength Pressures Gold
The weakening of other currencies against the dollar has put pressure on gold. Investors are currently awaiting the address by US Federal Reserve Chairman Jerome Powell. This annual address, scheduled for Friday in Jackson Hole, Wyoming, is considered significant. The market expects it to provide signals related to future interest rates and monetary policy. This is why gold prices have remained under pressure.
Impact of Inflation Data
Recently released inflation data in the US has been higher than expected. This has further complicated the Federal Reserve's monetary policy. The market had previously anticipated that interest rates might be cut soon, but the increase in inflation has reduced this possibility. Some traders now believe that the Fed may avoid aggressive rate cuts for the time being.
The market is also experiencing volatility due to former US President Donald Trump's tariff agenda. Analysts believe that if a major decision is taken on this, it will directly impact prices. Increased tariffs could lead to higher costs and further increase pressure on inflation. That's why everyone is watching the Federal Reserve's decisions.
Gold's Performance So Far
This year, gold prices have seen an increase for more than a quarter. Purchases by central banks, investments in exchange-traded funds (ETFs), and geopolitical tensions have provided b support to gold. Additionally, concerns about the impact of tariffs on the global economy have also pushed gold to higher levels. However, gold prices have been trading in a limited range for the past few months.
Analysts believe that potential interest rate cuts and the likelihood of a weaker dollar in the future could push gold prices higher again. There are indications that if the Fed reduces borrowing costs, demand for gold could increase once more.
International Market Situation
On August 20th, gold and silver prices recorded a decline in the international market. Gold on COMEX became 0.04 percent cheaper, reaching $3357.20 per ounce. The price of silver fell by 0.42 percent to $37.175 per ounce. Platinum also became 0.26 percent cheaper, trading at $1309.40 per ounce. Meanwhile, palladium was trading at $1107.50 per ounce, down by 0.40 percent.
