At the close of trading on 20/8, the spot price of gold increased by 33 USD an ounce to 3,346 USD. Earlier in the session, the precious metal had fallen to its lowest point since 1/8.

The market rallied as the US dollar weakened, making gold cheaper for buyers using other currencies. The Dollar Index fell 0.13% to 98.2 points.

Global gold prices reversed sharply higher in the 20/8 session. Graph: Kitco

The minutes from the US Federal Reserve's (Fed) July meeting also revealed that only two members of the board of governors, Michelle Bowman and Christopher Waller, supported an interest rate cut. Last month, the Fed held its benchmark interest rate steady at 4.25-4.5%.

Investors are now awaiting the Fed's annual conference in Jackson Hole, Wyoming, scheduled for 21-23/8. Last year, Fed Chair Jerome Powell hinted at interest rate cuts at this forum.

"If Powell expresses a dovish view, the gold price will be further supported, as it doesn't pay interest. The precious metal will have to surpass 3,350 USD to return to 3,400 USD an ounce," said Bob Haberkorn, market strategist at RJO Futures.

According to CME's FedWatch Tool, investors are currently predicting an 83% chance of a further 25 basis point rate cut by the Fed in September. Goldman Sachs suggests that the price could reach 4,000 USD by the middle of next year, driven by strong demand from central banks and ETFs, coupled with a 30% chance of a US recession within the next 12 months.

In addition to gold, other precious metals also increased in value. Silver rose 1.1% to 37.8 USD an ounce. Platinum added 2.1%, closing at 1,333 USD. Palladium remained stable around 1,115 USD.

In the US stock market, the DJIA closed almost unchanged on 20/8. Meanwhile, both the S&P 500 and Nasdaq Composite declined, with losses of 0.24% and 0.67% respectively.

Ha Thu (according to Reuters, Kitco)