Gold prices pushed higher on Wednesday as investors positioned themselves ahead of key U.S. Federal Reserve updates, with the minutes from the central bank’s July meeting due this afternoon and Chair Jerome Powell set to deliver remarks at the Jackson Hole symposium on Friday.
Spot gold rose 0.8% to $3,341.56 per ounce by late morning in New York, reversing much of this week’s earlier pullback. U.S. gold futures also advanced 0.8%, trading at $3,385.20 an ounce.
The precious metal briefly broke above $3,400/oz. earlier this month after the Fed opted to keep interest rates steady in July, fueling expectations of a rate cut in September. Since then, a stream of mixed U.S. economic data has tempered bullish momentum, keeping gold trading within a narrow range.
“Gold prices fell yesterday, so now traders are looking at it as an opportunity to get into gold ahead of the Fed minutes,” noted Bob Haberkorn, market strategist at RJO Futures. “If Powell is dovish, it’s bullish for gold… it will need to break through $3,350/oz. and ultimately retest $3,400/oz.”
Rate Cuts in Focus
According to the CME FedWatch tool, traders currently assign an 85% probability of a quarter-point rate cut in September. A dovish tone from Powell this week could reinforce those odds, giving gold further upside momentum.
Since gold does not yield interest, lower borrowing costs reduce its opportunity cost and typically make the metal more attractive to investors.
Geopolitical Wildcard
Beyond the Fed, markets are also keeping a close watch on U.S.-led diplomatic efforts to secure a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy. Any progress toward a ceasefire could dampen safe-haven demand for gold in the short term.
Longer-Term Outlook
Despite recent consolidation below April’s all-time high of $3,500/oz., gold remains one of 2025’s strongest performing assets, up more than 25% year-to-date. Robust central bank purchases, steady inflows into exchange-traded funds, and persistent geopolitical risks have all supported its rally.
Major banks remain bullish: UBS and Citigroup have both forecast further gains, citing favorable macro conditions and sustained investment demand.
With Powell’s speech on Friday and the Fed minutes out today, gold investors are bracing for clarity on whether the next leg higher will retest April’s record or consolidate further before resuming its upward trend.
