Gold bugs had plenty to cheer after Jerome Powell’s Jackson Hole address. Spot gold jumped 1.1 % to $3,373.89 per ounce, while U.S. gold futures closed at $3,418.50, as traders priced in an 85 % probability of a September rate cut. Powell acknowledged that the Fed may need to adjust policy if risks to the job market intensify but stopped short of promising immediate action. His dovish tone pushed the U.S. dollar down 1 %, making bullion more attractive for non‑dollar buyers.
Analysts say gold typically thrives in a low‑rate environment because it offers no yield, and the prospect of cheaper money has reignited demand. Independent metals trader Tai Wong noted that Powell’s remarks “opened the express lanes to a September rate cut” and predicted that a break above $3,400 could trigger further gains. Physical demand in Asia remained muted due to volatile prices, although Indian jewellers started stocking up ahead of festival season. Silver, platinum and palladium also rallied, underscoring a broad precious‑metals bid.
