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Fed's Jackson Hole symposium in Wyoming begins today

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US weekly jobless claims rise to highest since June

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Traders pricing in 79% chance of a quarter-point rate cut

by

September

(Updates for U.S. morning hours)

By Noel John

Aug 21 (Reuters) - Gold prices were steady on Thursday

as investors awaited Federal Reserve Chair Jerome Powell's

speech at the Jackson Hole symposium on Friday for signals on

the central bank's policy direction.

Spot gold fell marginally at $3,344.66 per ounce, as

of 9:43 a.m. ET (1343 GMT). U.S. gold futures for

December delivery were steady at $3,388.70.

The U.S. dollar index was up 0.2%, making U.S.

dollar-priced gold expensive for overseas buyers.

Powell is expected to speak at the Jackson Hole conference

about the economic outlook and the Fed's policy stance.

"If (Powell) signals a rate decrease in September, I don't

think much will happen because the market is already expecting

that," said Marex analyst Edward Meir.

"If he says we may decrease rates again in October, November

or December, I think the dollar could weaken and gold could push

higher," Meir added.

Non-yielding gold typically performs well in a low-interest

rate environment.

The Fed has kept rates unchanged since December, but traders

see a 79% chance of a quarter-point cut by September, according

to CME's FedWatch tool.

Minutes from the Fed's July meeting showed that Vice Chair

for Supervision Michelle Bowman and Governor Christopher Waller

were the only officials pushing for a rate cut, dissenting from

the decision to hold rates steady.

The number of Americans applying for unemployment benefits

jumped last week, marking the biggest increase in nearly three

months.

Meanwhile, Fitch Solutions' research company BMI on

Wednesday revised its 2025 gold price forecast upward by $150 to

$3,250 per ounce.

"Prices will remain elevated in the coming weeks as the

market braces for a U.S. Fed rate cut in September. Even then,

we believe the upside for gold following the rate cut will be

limited with most of it already priced in," BMI said in a note.

Spot silver was up 0.4% at $38.05 per ounce, platinum

fell 0.1% to $1,338.75 and palladium shed 1.3% to

$1,100.06.