Gold rebounded above $2,500 an ounce on Friday after Federal Reserve Chair Jerome Powell signalled that time has come for interest rate cuts starting this September.
Spot gold gained 0.9% at $2,508.16 per ounce by 12:30 p.m. ET Friday, having fallen below the $2,500 level the day before. US gold futures were up 1.0% at $2,542.70 an ounce in New York. In a much-anticipated speech, Powell affirmed expectations that officials will begin lowering borrowing costs next month and made clear his intention to prevent further cooling in the US labor market.
“The time has come for policy to adjust,” the Fed chair said in the text of a speech at the annual Jackson Hole conference. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.”
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