Gold price increased slightly but still fluctuated near a three-week low

Gold prices rose on Wednesday but remained at a three-week low, as investors awaited the minutes of the Federal Reserve's July meeting and the annual meeting in Jackson Hole, Wyoming this week for clues on a possible rate cut.

Spot gold prices rose 0.2% to $3,321.33 an ounce at 8:32 a.m. GMT, after hitting their lowest level since August 1. The US dollar index (.DXY) was steady after soaring to a more than a week's high in the previous session, making gold more expensive for holders of other currencies.

Han Tan - chief analyst at the Nemo.Money trading platform commented: "Department gold prices are likely to continue moving sideways until the Fed restarts the interest rate cutting cycle, while the USD's resilience since the beginning of the month has also made it difficult for gold to rebound."

The minutes of the Fed's July meeting, due to be released on the same day, are expected to provide more information on economic prospects and monetary policy.

The market will closely monitor disagreements from the recent FOMC meeting. Gold could receive slight support ahead of the Jackson Hole conference if the minutes show stronger-than-expected opposition at the previous policy meeting, Han Tan of Nemo.Money added.

FED Chairman Jerome Powell is scheduled to speak at the Jackson Hole conference hosted by FED Kansas City on Friday. Gold often benefits in a low interest rate environment and times of economic and geopolitical instability.

On geopolitics, US President Donald Trump on Tuesday denied the possibility of deploying infantry to Ukraine but suggested that air support could be part of an agreement to end the war in the region.

Ukrainian President Volodymyr Zelensky called the White House talks a major step forward towards ending the conflict and preparing for a tripartite meeting with Russian President Vladimir Putin and US President Donald Trump.

For other precious metals, spot silver fell 1% to $3.98/ounce, platinum rose 0.4% to $1,311.05, while gold fell 0.8% to $1,105.98.