Gold price today August 26: Sharp drop despite expectations of Fed rate cut

(NLDO) – Gold price today, August 26, decreased by tens of USD/ounce, although the market is expecting the US Federal Reserve (FED) to soon loosen monetary policy.

Gold price today weakens

At 6:00 a.m. this morning, August 26 (Vietnam time), the price of gold on the international market was 3,362 USD/ounce, down 22 USD compared to the peak in last night's trading session (3,374 USD/ounce).

Gold investors continue to react to a speech by Federal Reserve Chairman Jerome Powell last weekend. Powell hinted at the possibility of a rate cut at the Fed’s September policy meeting, marking a shift to a more dovish monetary policy. However, some Fed members remain divided on the decision.

Mr. Powell stressed that the US economy is facing a "challenging situation" as inflation remains above the 2% target and the labor market shows signs of weakness.

Despite being supported by expectations of low interest rates, gold prices are still under pressure from the strength of the US dollar. A strong US dollar makes the precious metal more expensive for international investors, reducing demand and creating a drag on gold prices today.

Investors are now focused on the Personal Consumption Expenditures (PCE) report, due on August 28. This is the Fed’s preferred inflation measure and will provide important information on the future direction of monetary policy. The PCE report results could strengthen or weaken expectations for a Fed rate cut, thereby causing major volatility in the gold market.

In Vietnam, at the end of August 25, SJC gold was sold at 127.1 million VND/tael, while ring gold was 121.6 million VND/tael.

Source: https://nld.com.vn/gia-vang-hom-nay-26-8-giam-manh-bat-chap-ky-vong-fed-cat-giam-lai-suat-196250826061824788.htm