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PRECIOUS-Gold inches lower on hawkish FOMC minutes, focus on Jackson Hole summit
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PRECIOUS-Gold inches lower on hawkish FOMC minutes, focus on Jackson Hole summit
Aug 21, 2025 2:29 AM

*

Fed minutes show nearly all members prefer leaving rates

unchanged

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Trump calls on Fed Governor Cook to resign over mortgage

allegations

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Fed's Jackson Hole symposium in Wyoming begins today

(Updates for EMEA morning session)

By Ishaan Arora

Aug 21 (Reuters) - Gold prices edged lower on Thursday

after the U.S. Federal Reserve's July meeting minutes showed a

majority consensus on holding interest rates steady, as

investors look to the central bank's annual Jackson Hole

symposium later in the day for further policy cues.

Spot gold was down 0.2% at $3,340.09 per ounce, as of

0802 GMT. U.S. gold futures for December delivery also

lost 0.2% to $3,382.30.

Minutes from the Fed's July meeting showed the policymakers

who dissented against last month's decision to keep interest

rates unchanged - Vice Chair for Supervision Michelle Bowman and

Governor Christopher Waller - were alone in advocating for a

rate cut.

"FOMC minutes were hawkish, the Fed's board remains inclined

to prioritize inflation control by keeping monetary policy tight

rather than cutting the cost of money," said Carlo Alberto De

Casa, external analyst at Swissquote.

Non-yielding gold typically performs well in a low interest

rate environment.

The Fed has held rates steady since December, although

investors still expect an 81% chance of a quarter-point cut by

September, according to the CME's FedWatch tool.

Fed Chair Jerome Powell is expected to speak on Friday at

the August 21-23 Jackson Hole symposium, with investors watching

whether he backs measures to bolster the labour market or

focuses on curbing inflation.

"A hawkish Fed could have an impact on the gold price, but

as long as gold remains in the $3,270-3,440 range, there are no

massive risks for big falls (given) that central banks are still

buying tonnes of gold," De Casa added.

Meanwhile, President Trump called on Fed Governor Lisa Cook

to resign over allegations made by one of his political allies

about mortgages she holds, intensifying his efforts to influence

the central bank. Cook said she had "no intention of being

bullied to step down" from her position.

China's central bank added gold to its reserves in July, its

ninth consecutive month of purchases, official data showed

earlier this month.

Spot silver was down 0.2% at $37.83 per ounce,

platinum fell 1% to $1,326.93 and palladium shed

0.8% to $1,105.12.

(Reporting by Ishaan Arora in Bengaluru; Editing by Emelia

Sithole-Matarise)

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