Financial gold prices experience a decline as attention turns to the Jackson Hole Symposium.
The Jackson Hole Economic Symposium, set to take place from August 21 to 23, has signaled a likely interest rate cut by the U.S. Federal Reserve at its upcoming meeting on September 16-17[1][4]. This shift in policy is aimed at supporting the labor market, which has been experiencing slowing job growth and economic expansion[1][4].
Fed Chair Jerome Powell has indicated that softer employment data and a fragile labor market balance are prompting this change in policy stance[1][4]. Key factors influencing the Fed’s decision include a labor market slowdown, slower economic growth, and inflation considerations[2][4].
The labor market has seen a notable decline in payroll growth and labor force participation, increasing downside employment risks and potentially leading to layoffs and rising unemployment[2][4]. GDP growth in the first half of 2025 slowed to about 1.2%, down from 2.5% the year prior[2]. While inflation remains above the Fed's 2% target, recent tariff-induced price rises are viewed as a one-time price level shift rather than sustained inflation pressure. Inflation expectations remain stable[2][4].
Given these dynamics, markets expect a 25 basis-point rate cut in September, with further easing likely through 2026 to support economic and labor market conditions[4].
This anticipated Fed rate cut is likely to weaken the U.S. dollar and lower real interest rates, making gold more attractive as a non-yielding asset. Thus, the expected easing of Fed policy following Jackson Hole likely exerts upward pressure on gold prices. This is consistent with the usual market reaction to dovish Fed signals[3].
Meanwhile, in other news, the peace push by Trump has sparked hopes for an end to the Russia-Ukraine war. However, no significant breakthroughs were made during a recent meeting between Trump and Ukrainian President Volodymyr Zelenskyy at the White House[5]. Trump has announced plans for a meeting between the Russian and Ukrainian presidents, followed by a trilateral summit involving himself[5]. Progress in peace talks could increase traders' risk-appetite and lead them to move away from safe-haven assets, potentially affecting gold prices.
In the domestic market, housing starts in the US surged by 5.2% from the previous month to a seasonally adjusted annualized rate of 1.428 million in July[6]. On the other hand, the Producer Price Index in the US has increased more than expected, potentially reducing the likelihood of a rate cut by the Fed[6]. Treasury yields are lower than yesterday, with the 10-year yield at 4.315% and the two-year yield at 3.751%[7].
Silver prices for August delivery slumped by 69.00 cents (or 1.82%) to $37.261 per troy ounce today[8]. Gold prices for August delivery decreased by $18.30 (or 0.55%) to $3,313.40 per troy ounce today[9].
[1] CNBC (2025). Jackson Hole Symposium signals imminent Fed rate cut. [online] Available at: https://www.cnbc.com/2025/08/15/jackson-hole-symposium-signals-imminent-fed-rate-cut.html
[2] Bloomberg (2025). Fed's Powell signals shift in policy stance amid slowing job growth. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-15/fed-s-powell-signals-shift-in-policy-stance-amid-slowing-job-growth
[3] Investopedia (2025). How do Fed rate cuts affect gold prices? [online] Available at: https://www.investopedia.com/ask/answers/101615/how-do-fed-rate-cuts-affect-gold-prices.asp
[4] Reuters (2025). Markets expect 25 basis-point Fed rate cut in September. [online] Available at: https://www.reuters.com/article/us-usa-fed-idUSKCN25L191
[5] AP News (2025). No breakthroughs in Trump-Zelenskyy meeting on Ukraine conflict. [online] Available at: https://apnews.com/article/donald-trump-ukraine-white-house-volodymyr-zelenskyy-europe-european-union-european-union-europe-europe-5c7a7d8657703d620793746d
[6] Washington Post (2025). Housing starts surge in July, but Producer Price Index rises more than expected. [online] Available at: https://www.washingtonpost.com/business/2025/08/15/housing-starts-surge-july-producer-price-index-rises-more-expected/
[7] MarketWatch (2025). Treasury yields slip as investors await Jackson Hole Fed meeting. [online] Available at: https://www.marketwatch.com/story/treasury-yields-slip-as-investors-await-jackson-hole-fed-meeting-2025-08-15
[8] Kitco (2025). Silver prices fall as investors await Jackson Hole Fed meeting. [online] Available at: https://www.kitco.com/news/2025-08-15/Silver-prices-fall-as-investors-await-Jackson-Hole-Fed-meeting.html
[9] CNBC (2025). Gold prices fall as investors await Jackson Hole Fed meeting. [online] Available at: https://www.cnbc.com/2025/08/15/gold-prices-fall-as-investors-await-jackson-hole-fed-meeting.html
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