Gold prices are sluggish, investors await Fed Chairman's speech

Spot gold decreased by 0.2% to 3,338.89 USD/ounce at 6:03 GMT (ie 13:03 Vietnam time). US December gold futures also fell 0.2% to $3,381.20 an ounce. The USD Index increased by 0.1%, making gold priced in greenback more expensive for overseas buyers.

Fed Chairman Jerome Powell is scheduled to speak on Friday at an event from August 21-23, with investors interested in whether he will prioritize measures to support the labor market or focus on controlling inflation.

Brian Lan - CEO of Gold Silver Central commented: "We did not think gold prices would increase sharply, but are currently in a flat period. Even if interest rates fall slightly, gold prices could increase and move towards $3,400/ounce. Otherwise, prices could continue to move sideways or fall slightly to near $3,300/ounce.

Last month, FED officials including Michelle bowman and Governor Christopher Waller voted to reduce the labor market by 0.25%, but did not receive widespread consensus.

The Fed has kept interest rates unchanged since December, while the market is betting on an 85% chance of a 0.25% cut in September, according to CME's FedWatch tool.

Gold is often moving positively in a low interest rate environment and period of uncertainty.

On the political front, US President Donald Trump called on Fed Governor Lisa Cook to resign over allegations of mortgages in Michigan and Georgia, increasing efforts to impact central banks.

In other developments, Russia declared efforts to resolve security issues related to Ukraine without the participation of Moscow as a "road to a deadlock".

For other metals, spot silver fell 0.1% to $37.86/ounce, platinum fell 0.6% to $1,332.30 and palladium lost 0.5% to $1,108.26.