Gold prices saw a modest decline on Thursday, while silver prices moved higher. The movements came as global financial markets turned their attention to the Jackson Hole economic symposium, set to begin this week in the United States. This annual event, attended by key central bank officials from around the world, often provides important signals about future monetary policy, particularly interest rates.
Investors remained cautious as they waited for any clues about whether central banks, especially the U.S. Federal Reserve, will maintain high interest rates or consider easing. High interest rates tend to weigh on gold prices because they increase the opportunity cost of holding non-interest-bearing assets like gold. As a result, the stronger U.S. dollar and rising Treasury yields put downward pressure on gold.
Despite this, silver saw a bit of strength. Silver not only functions as a precious metal but also has industrial uses. With recent signs of global economic activity holding steady, some investors expect better industrial demand, which helped support silver prices.
Market volatility was relatively low, with many traders choosing to stay on the sidelines until after the Jackson Hole meeting. The event could lead to sharp movements in gold, silver, currencies, and other markets, depending on what is said about inflation and the direction of interest rates.
On the technical side, gold prices are still within a broader sideways range. Short-term momentum seems weak, but major support levels remain intact. Silver, meanwhile, is showing more strength and may be preparing for a new upward move if it breaks above resistance levels.
In summary, while gold dipped slightly, silver gained some ground as the market enters a "wait-and-see" mode ahead of one of the most important events for monetary policy watchers. All eyes now turn to the weekend to see if central bankers will offer new guidance that could shift the market landscape.
