Gold weakens as dollar strength, risk appetite dampen safe-haven demand

August 20, 2025 (MLN): Spot gold was down 0.25% at $3,322.88 an ounce as of [11:52 am] PST, according to data reported by Mettis Global

Gold prices retreated to their lowest level in nearly three weeks on Wednesday as a stronger U.S. dollar and improved risk sentiment weighed on the safe-haven metal, with investors closely awaiting the Federal Reserve’s Jackson Hole symposium for policy cues.

U.S. gold futures for December delivery slipped 0.1% to $3,355.50,

The U.S. dollar index climbed to its highest in more than a week, making bullion less attractive for holders of other currencies.

“Gold is facing pressure from a firm dollar and improving risk appetite on the back of recent geopolitical developments,” said Kelvin Wong, senior market analyst at OANDA to CNBC.

“Markets are now focused on Fed Chair Jerome Powell’s speech in Jackson Hole.”

Powell is scheduled to speak at the Kansas City Fed’s annual symposium on Friday, with investors hoping to glean insights into the central bank’s monetary policy trajectory, according to CNBC.

Interest rate futures indicate expectations of two quarter-point cuts this year, with the first likely in September. Gold generally benefits from a low-interest-rate environment and heightened geopolitical uncertainty.

On the geopolitical front, U.S. President Donald Trump ruled out sending ground troops to Ukraine but floated the possibility of air support as part of a potential deal to end the war.

Ukrainian President Volodymyr Zelenskiy described his talks at the White House as a “major step forward,” paving the way for a possible trilateral meeting with Russian President Vladimir Putin and Trump.

Among other precious metals, spot silver dropped 0.3% to $37.26 per ounce, platinum rose 0.2% to $1,308.90, while palladium declined 0.7% to $1,106.83.

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