Gold steady near record high as markets assess Powell's comment

Synopsis

Gold prices remained stable near record highs. Investors are carefully analyzing Jerome Powell's remarks on potential interest rate cuts. They are also awaiting a key inflation report. The dollar's weakness made gold more affordable. NATO cautioned Russia regarding airspace violations. Other precious metals like silver saw little change. Markets anticipate possible rate cuts later this year.

Gold held steady near a record high on Wednesday as investors assessed U.S. Federal Reserve Chair Jerome Powell's cautious comments on interest rate cuts while awaiting a key inflation report due later in the week for further policy cues.

FUNDAMENTALS

* Spot gold held its ground at $3,762.05 per ounce, as of 0052 GMT. Bullion hit a record high of $3,790.82 on Tuesday.

* U.S. gold futures for December delivery fell 0.6% to $3,794.50.

* The U.S. dollar index hovered near a one-week low, making greenback-priced bullion less expensive.

* Powell said on Tuesday the central bank needed to continue balancing the competing risks of high inflation and a weakening job market in coming rate decisions, even as his colleagues staked out arguments on both sides of the policy divide.

* The U.S. weekly initial jobless claims report is due on Thursday, followed by the Personal Consumption Expenditures index, the Fed's preferred inflation gauge.

* Markets anticipate two more 25-basis-point rate cuts this year, with a 93% probability in October and a 77% probability in December, according to the CME FedWatch tool.

* In its latest Economic Outlook Interim Report, the Organisation for Economic Cooperation and Development said the full impact of U.S. tariff hikes was still unfolding, with firms so far absorbing much of the shock through narrower margins and inventory buffers.

* NATO warned Russia on Tuesday that it would use "all necessary military and non-military tools" to defend itself as it condemned Moscow for violating Estonian airspace in a "pattern of increasingly irresponsible behaviour".

* Spot silver was steady at $44.02 per ounce, platinum remained unchanged at $1,478.15 and palladium fell 0.4% to $1,214.78.

DATA/EVENTS (GMT)

0800 Germany Ifo Business Climate New Sep

0800 Germany Ifo Curr Conditions, Expectations New Sep

1400 US New Home Sales-Units Aug.

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