Investing.com - Gold prices fell in Asia on Thursday as investors geared up for a slate of central bank chiefs at Jackson Hole, Wyoming, over the next two days to discuss global monetary policies.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange drifted down 0.12% to $1,293.20 a troy ounce.
Traders remained cautious of initiating large positions in the precious metal ahead of speeches by European Central Bank president Mario Draghi and Federal Reserve chair Janet Yellen at the central banking symposium. The Jackson Hole conclave is expected to shed further light on the path of interest rate hikes in the U.S. this year and on unwinding stimulus efforts by central banks globally, with a particular focus on the European Central Bank.
Ahead of the central banking symposium analysts have scaled back expectations of further monetary policy tightening.
“Yes the Fed may hike in December and yes the ECB may announce a further taper for 2018 in October but recent events (softer inflation, softer market sentiment and the strong Euro for the ECB) may mean that now might not be the time they choose to guide markets towards such an outcome”. Analysts at Deutsche Bank (DE:DE:DBKGn) said.
Overnight, gold prices rose on Wednesday, as U.S. political uncertainty resurfaced, after President Donald Trump threatened to ‘close down’ the government, sparking fresh fears that continued political uncertainty in Washington could further delay the introduction of tax-reform.
Gold’s path to $1,300 was made easier somewhat as investors fretted the possibility of further turmoil in Washington, following President Trump’s threat to shut down the government if he does not get funding for a wall on the U.S.-Mexico border.
"If we have to close down our government, we're building that wall," President Trump said. "We're going to have our wall. The American people voted for immigration control. We're going to get that wall."