Gold slides as traders look ahead to Jackson Hole speeches
Investing.com - Gold prices edged lower on Tuesday, as market players looked ahead to the annual meeting of top central bankers and economists in Jackson Hole, Wyoming later this week.
Comex gold futures shed $7.50, or around 0.6%, to $1,289.15 a troy ounce by 3:05AM ET (0705GMT).
The yellow metal logged its highest finish in nearly 11 weeks on Monday as tensions between the U.S. and North Korea came back in focus.
An annual meeting of top central bankers and economists hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming, is set to take place from Thursday to Saturday, with keynote speeches from Janet Yellen and Mario Draghi in the spotlight.
Their comments will be closely watched for fresh policy signals from the world’s two most powerful central banks.
Fed chair Yellen will speak on the topic of financial stability at 10:00AM ET (1400GMT) Friday. With minutes from the Federal Open Market Committee's latest deliberations showing concern about soft inflation, she is not likely to give new guidance on policy.
Markets remain skeptical the Fed will raise rates a third time this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September.
Later in the day, ECB chief Draghi will deliver remarks at 3:00PM ET (1900GMT). While market expectations had been previously high that Draghi would use his address to signal ECB tapering in the autumn, reports last week suggest he will not be making major policy announcements.
Investors are likely to continue to fret over the latest headlines coming out of Washington after political developments shook the market last week.
The deepening turmoil surrounding President Donald Trump's administration intensified doubts that he would be able to follow through on his campaign promises for tax cuts, deregulation and fiscal stimulus.
Elsewhere on the Comex, silver futures dipped 9.8 cents, or around 0.6%, to $16.91 a troy ounce.
Among other precious metals, platinum slumped 0.6% at $979.95, while palladium declined 0.2% to $936.88 an ounce.
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