Gold Advances as Traders Focus on Jackson Hole and Ukrainian Diplomacy

Gold prices increased as traders anticipated possible interest rate signals from the Federal Reserve’s annual meeting in Jackson Hole, alongside intense diplomatic efforts in Washington to resolve the ongoing war in Ukraine.

Prices for bullion climbed as much as 0.7% to around $3,359 an ounce, rebounding from a 1.8% decline over the past week. Central bankers from across the globe will convene at the retreat in Wyoming starting this Friday, with market forecasts indicating that a rate cut in the U.S. is expected during the Fed’s regular policy session next month.

Prior to the event—featuring a speech from Fed Chair Jerome Powell—Raphael Bostic, president of the Atlanta Fed, commented after concluding a three-day tour of the southeastern U.S. He emphasized that tariff pressures were significant, high borrowing costs were impacting business profits, and he was receptive to the possibility of adjusting rates in the near future.

Gold has surged by more than 25% this year, with most of that gain occurring in the first four months when prices hit a record in April. Since then, the market has stabilized as investors have been monitoring the repercussions of the U.S.-led trade war, global economic strength concerns, and geopolitical uncertainties. Central bank purchases have also provided a boost to bullion.

“Markets are increasingly anticipating that the Federal Reserve will adopt a more dovish stance at the forthcoming Jackson Hole symposium, with traders largely overlooking last week’s slightly higher U.S. inflation data,” noted Priyanka Sachdeva, an analyst at Phillip Nova Pte in Singapore. “The overall market sentiment suggests that inflationary pressures continue to ease.”

In the U.S., Ukrainian President Volodymyr Zelenskiy and his European partners are set to learn what U.S. President Donald Trump agreed upon during his recent summit with Russian President Vladimir Putin, amid fears that he might press Kyiv into making undesirable concessions.

Gold rose 0.6% to $3,355.21 an ounce at 3:24 p.m. Singapore time. The Bloomberg Dollar Spot Index remained stable. Silver prices held steady, whereas platinum and palladium saw declines.

© 2025 Bloomberg

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