Gold extends losses on Friday

Gold extended its recent losses to around $3,330 per ounce on Friday, holding within a narrow range as investors refrained from major moves ahead of Federal Reserve Chair Jerome Powell’s much-anticipated remarks at the Jackson Hole symposium. Traders are looking for clarity on whether Powell will push back against rising expectations for a September rate cut or leave the door open to easing. The uncertainty has kept gold in consolidation mode, with price action capped by a stronger US dollar and firm Treasury yields.

On Thursday, Fed officials gave little sign of immediate support for rate cuts, instead stressing the importance of balancing inflation risks with signs of a cooling labor market. While headline inflation has eased from its peak, it remains above target and vulnerable to tariff-related price pressures. Still, futures markets continue to price in a 75% chance of a quarter-point cut in September, with some traders betting on further reductions by year-end if labor conditions deteriorate further.

From a geopolitical perspective, the safe-haven appeal of gold has been dampened by fading hopes for a breakthrough in Ukraine peace efforts. Reports indicated that Russia carried out its largest drone and missile attack on Ukraine in more than a month, while Moscow accused Kyiv of dismissing the prospect of a “lasting and fair settlement.” The developments underscore persistent geopolitical risks, though for now markets appear more focused on the Fed’s policy trajectory.

For the week, bullion looks set to close little changed, caught between a softer macroeconomic outlook that favors policy easing and near-term headwinds from a stronger greenback. Analysts suggest that Powell’s speech could set the tone for gold heading into September: a dovish tilt may revive upward momentum, while a firmer pushback against market expectations could keep prices under pressure.