Gold prices stabilize as they await signals from "Jackson Hole" and developments in monetary policy

Gold prices witnessed a state of stability on Friday, August 22, as global markets awaited the speech of the Chairman of the U.S. Federal Reserve, Jerome Powell, scheduled to be delivered at the annual Jackson Hole symposium, which is being closely watched in hopes of gaining clearer signals regarding the future trajectory of U.S. monetary policy.

According to available data, gold prices stabilized in spot transactions at $3337.12 per ounce by 00:42 GMT, while U.S. futures contracts for December delivery remained largely unchanged at $3380.30.

A key factor contributing to this stability is the rise of the dollar index, which hovered near its highest level in a week, heading towards weekly gains, raising the cost of the precious metal for holders of other currencies and reducing its investment appeal.

This scene comes just one day after Federal officials expressed "coolness towards the idea of cutting interest rates next month," while markets are closely awaiting Powell's speech scheduled for today at 14:00 GMT.

Analysts' expectations focused on looking for any clear signal regarding the possibility of an interest rate cut during the upcoming Federal meeting on September 16 and 17. The "FedWatch" tool from the "CME Group" indicates that "markets are pricing in a 75% probability of a quarter-point rate cut next month."

In the context of economic data supporting this trend, recent U.S. figures showed that "unemployment claims rose last week at the largest pace in nearly three months," while claims from the previous week reached "their highest level in about 4 years," reflecting continued weakness in the labor market during August.