Gold under pressure as investors weigh Fed outlook

Gold was under some pressure on Friday but remained within a range overall, with investors reluctant to take strong positions ahead of a key speech by Federal Reserve Chair Jerome Powell.

The metal’s consolidation was underpinned by shifting expectations for US monetary policy and geopolitical developments.

Market attention remains focused on the Fed’s outlook on interest rates. Recent remarks from officials suggested caution about moving too quickly with easing, while futures pricing still implies a high probability of a rate cut in September.

Stronger macro data, including resilient business surveys, tempered expectations. With Powell set to outline the Fed’s outlook, gold could remain at risk.

At the same time, physical gold demand showed mixed signals across Asia, contributing to gold’s sideways trade. Indian jewellers cautiously resumed purchases ahead of the festival season, although retail buying remains well below normal levels. Trade in Hong Kong and Singapore reflected a similarly muted appetite.

However, geopolitical tensions continue to provide a floor. Hopes for a Russia–Ukraine settlement dimmed as missile and drone attacks continued. Simultaneously, geopolitical tensions in the Middle East persist, reinforcing the case for safe-haven positioning.