Gold near 5-month lows as focus turns to Jackson Hole summit

economictimes.indiatimes.com:

Gold prices steadied above 5-month lows on Monday after declining in the previous five sessions, as investors saddled up for central bankers' gathering in Jackson Hole, Wyoming this week, for outlook on economy and interest rates. FUNDAMENTALS * Spot gold was flat at $1,888.36 per ounce by 0124 GMT, while U.S. gold futures added 0.1% to $1,917.70. * Prices dropped to their lowest since mid-March at $1,883.70 last week, as buoyant economic data raised bets for higher-for-longer U.S.

interest rates, reducing demand for gold which does not yield any interest. * Investors' focus will be on U.S. Federal Reserve chair Jerome Powell's speech on Friday, as central bankers from around the world assemble in Jackson Hole for their annual conference.

* The Fed is likely done raising interest rates, according to a strong majority of economists polled by Reuters, and a slight majority now expect the central bank to wait at least through end-March before cutting them. * Rising Treasury bond yields and home mortgage rates may reduce support at the Fed for additional interest rate increases, the prospect of which have already been ebbing on the basis of weaker inflation. * Meanwhile, China cut its one-year benchmark lending rate on Monday, as expected, as authorities seek to ramp up efforts to stimulate credit demand, but surprised markets by keeping the five-year rate unchanged.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 890.10 tonnes on Friday, from 887.50 tonnes on Thursday. [GOL/ETF] * Premiums on physical gold in China jumped to the highest since December 2016 last week, while lower domestic prices brought back some buyers in India. [GOL/AS] * In other metals, spot silver