Gold closed at 3,370 USD per ounce on 22/8, up 33 USD. The market rallied on expectations that the US Federal Reserve (Fed) will cut interest rates in September, following remarks by Fed Chair Jerome Powell.

At the Fed's annual Jackson Hole symposium on 22/8, Powell stated that shifting risk balances could warrant a change in policy stance. However, he stopped short of making any firm commitments. He acknowledged rising risks to the labor market, but also warned that inflationary pressures persist.

Global gold prices soared on 22/8. Chart: Kitco

"Powell surprised the market by leaving the door open for a September rate cut. This spurred gains across a range of assets, including gold," said Tai Wong, an independent precious metals trader. Silver, platinum, and palladium also rose 1-2%.

The CME's FedWatch Tool now shows an 85% probability of a rate cut next month, up from 75% before the Fed meeting. US President Donald Trump added to the pressure on 22/8 by threatening to fire Fed Governor Lisa Cook if she didn't resign.

The Dollar Index, which measures the greenback's strength, fell 1% on 22/8. A weaker dollar makes gold more affordable for buyers using other currencies.

In the US stock market, the DJIA closed at a record high of 45,631 points on 22/8. The S&P 500 and Nasdaq Composite also gained nearly 2%. This helped the S&P 500 snap a five-session losing streak.

Shares of several tech giants surged after Powell's comments: Nvidia rose 1.7%, Meta Platforms climbed over 2%, Alphabet and Amazon both gained more than 3%, and Tesla led the pack with a 6% increase. These stocks had previously been under pressure from selling.

"Powell did what central bankers do best at Jackson Hole - leave options open on a rate cut. Acting in September would reassure households and businesses that the central bank isn't asleep at the wheel. Further delay only increases the risk of a hard landing," Nigel Green, CEO of deVere Group, told Reuters.

Ha Thu (according to Reuters, Kitco)