Gold Steady Despite Powell's Hawkish Stance

Gold maintained its position on Monday as investors processed Federal Reserve Chair Jerome Powell's hawkish remarks before a series of U.S. economic data releases this week, expected to provide insights into inflation and the labor market.

Spot gold remained stable at $1,914.59 per ounce by 1200 GMT, while U.S. gold futures increased by 0.1% to $1,942.10. Market analyst Carlo Alberto De Casa at Kinesis Money noted, "Even if gold and silver are not moving up, their relative steadiness can be considered positive news in this environment."

Powell's Jackson Hole Speech

Powell suggested at the Jackson Hole gathering that the U.S. central bank might need to raise interest rates further to curb still-elevated inflation. This outlook has been balanced by a stronger dollar and a retreat in 10-year Treasury yields from multi-year highs.

Yeap Jun Rong, a market strategist at IG, commented, "The general view is that market participants were already priced for a hawkish outcome in the lead-up to Powell's speech, which allows room for some relief on little surprises." This sentiment is echoed by concerns over re-accelerating inflation and mounting bets on a November rate hike.

Upcoming Economic Data

This week's economic data, including the U.S. core PCE inflation and August non-farm payroll report, will likely offer more clarity on the economy's strength. Investor sentiment toward bullion was highlighted by data showing COMEX gold speculators reduced net long positions in the week ended Aug. 22.

Among other metals, spot silver fell 0.1% to $24.18 but remained close to Aug. 2 highs. Platinum eased 0.5% to $939.63, while palladium rose 0.9% to $1,235.73.