23 Aug 2025
Gold above $3,370 as Powell turns dovish, labor risks rise
Gold prices rallied sharply after Powell’s dovish tone highlighted employment risks despite persistent upside risks to inflation.
Traders priced in a 90% probability of a 25 basis-point Fed cut, with key data still ahead before September.
Next week’s US docket includes Durable Goods, GDP, and the Fed’s preferred inflation gauge, the Core PCE Price Index.
Gold prices continue to trend higher on Friday after the Federal Reserve (Fed) leaned dovish, as commented by the Fed Chair Jerome Powell, who said that “downside risks to the labor market are rising.” XAU/USD trades at $3,371 after hitting a daily low of $3,321.
