Gold, Silver Shine as Bets on Fed Rate-Cut Surge

Gold prices climbed on Friday as expectations of a September interest rate cut strengthened following remarks by Federal Reserve Chair Jerome Powell at the central bank’s annual Jackson Hole symposium.

Spot gold rose 0.7% to $3,362.53 an ounce, while U.S. gold futures slipped 0.8% to $3,408.20. The U.S. dollar index fell 0.7%, making gold more attractive to holders of other currencies.

Silver also rose 1.3% to $38.67 an ounce, platinum advanced 0.5% to $1,359.75, and palladium climbed 1.4% to $1,126.25.

Powell stopped short of explicitly signaling a rate cut, but said the Fed must weigh a “changing balance of risks” that includes rising strains in the labor market alongside persistent inflation pressures.

Independent metals trader Tai Wong said Powell’s address, his eighth and final at Jackson Hole, gave markets the confidence they had been waiting for.

“Powell surprised anxious markets and opened the expressway to a September rate cut, boosting all assets including gold,” Wong noted. “The key question now is whether gold can break through and hold above the $3,400 level in the coming days.”

According to CME’s FedWatch tool, market odds of a 25-basis-point cut in September jumped to 90 percent, up from 75 percent before Powell’s speech. Traders say upcoming U.S. jobs and inflation data ahead of the September 16–17 FOMC meeting will be critical in confirming the Fed’s next move.

Gold is traditionally favored in a lower-rate environment, as it offers no yield and becomes more appealing compared to interest-bearing assets.