Gold Nears 15-Week High Ahead of Jackson Hole Amid Stronger US Dollar

Gold prices rose on Thursday in European trading, nearing a 15-week high as investors sought out the precious metal amid active demand. The gains were tempered by a stronger US dollar against a basket of global currencies, particularly after the release of US Personal Consumption Expenditures data that kept expectations for another interest rate hike alive.

The US Dollar Index rose over 0.1% on Thursday, holding its gains for a second consecutive session and reflecting continued strength in the US currency. As gold is dollar-denominated, a stronger US dollar makes it less attractive to buyers holding other currencies.

Markets are now awaiting the start of the annual Jackson Hole Economic Symposium and Federal Reserve Chair Kevin Warsh's speech on Friday for crucial clues about the future path of US monetary policy. If Warsh's comments are less hawkish than markets expect, expectations for a US interest rate hike this year could decline, supporting higher gold prices.