Gold dips as dollar holds firm; Powell speech awaited

Gold slipped on Monday as the dollar steadied near a more than one-week high, while investors awaited Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole later this week for clarity on the direction of U.S. monetary policy.

FUNDAMENTALS
Spot gold was down 0.3% to $1,933.37 per ounce by 0046 GMT after hitting a one-week low of $1,910.99 on Friday.

U.S. gold futures fell 0.4% to $1,910.10.

The dollar index held steady against a basket of major currencies after climbing to a more than one-week high in the previous session.

Powell will discuss monetary policy on Thursday at the opening day of the Kansas City Fed’s annual symposium.

Top Democrats and Republicans blamed each other for stalled talks on coronavirus aid legislation on Sunday, a day after the House of Representatives approved $25 billion in new funds for the U.S. Postal Service.

More than 23.31 million people have been reported to be infected by the novel coronavirus globally and 805,075? have died, according to a Reuters tally.

The U.S. Food & Drug Administration on Sunday said it authorised the use of blood plasma from patients who have recovered from COVID-19 as a treatment for the disease.

Asian shares eased on Monday as investors treaded cautiously on heady valuations.

Speculators raised their bullish positions in COMEX gold and silver contracts in the week to Aug. 18, the U.S. Commodity Futures Trading Commission said on Friday.

Physical gold dealers in India last week offered the highest discounts in more than a month and a half, as buyers stayed away even as more bullion flowed in from the United Arab Emirates.

Silver dropped 0.6% to $26.54 per ounce, platinum slipped 0.5% to $913.78, and palladium fell 0.4% to $2,173.32.