Gold dipped to around $3,360 per ounce on Monday, following a more than 1% gain in the previous session, as the US dollar attempted to recover after a dovish shift by Fed Chair Jerome Powell.
In his Jackson Hole speech, Powell signaled the possibility of rate cuts, noting that while unemployment remains low, labor market risks are rising and monetary policy remains "restrictive," suggesting potential adjustments may be needed.
Markets reacted swiftly, with futures now nearly fully pricing in a 25bps cut in September.
Meanwhile, escalating tensions between Russia and Ukraine also boost the safety appeal for gold. Ukrainian President Volodymyr Zelensky, in a defiant address, pledged to continue defending the nation "while its calls for peace are not heard."
His remarks came after Moscow claimed Ukraine targeted Russian power and energy facilities overnight, including a fire at a nuclear plant in the western Kursk region.
