Gold Market Insight

Today’s Market Analysis
By Ahmad Assiri, Research Strategist at Pepperstone

Gold remained steady around $3,350 per ounce, extending its rebound from recent lows as investors absorbed the dovish message delivered by Fed Chair Powell at Jackson Hole.

By downplaying inflation concerns, Powell reassured markets that monetary policy is skewed toward easing rather than renewed tightening—a backdrop that naturally favors the yellow metal. In the near term, the risk-reward profile has shifted in gold’s favor. His remarks reinforced expectations of future policy cuts, even if that outlook appears somewhat ahead of incoming data. Within this environment, a dovish Fed sets the stage for another upward move in gold, particularly if upcoming economic reports fail to validate Powell’s optimism.

Two immediate catalysts will be critical in shaping sentiment. The PCE report, projected to edge closer to 3%, suggests the Fed may be effectively abandoning its 2% inflation target—likely weighing on the dollar and paving the way toward the $3,400 level. However, next week’s nonfarm payrolls data will carry greater significance. Any further signs of labor market weakness would bolster the case for rate cuts and amplify demand for gold.

Against this backdrop, gold appears firmly supported above $3,320, with $3,400 now within striking distance as policy credibility, labor market fragility, and tariff-related inflation pressures continue to underpin long-term investor demand.