Gold prices demonstrated continued strength in European trading on Thursday, marking the third consecutive session of gains as the December gold futures climbed and closed at $3,477 per troy ounce. This upward momentum reflects a confluence of factors, primarily centered around persistent weakness in the US dollar and evolving Federal Reserve monetary policy expectations.

Gold markets displayed modest strength on Wednesday, with spot prices advancing marginally as investors maintained a cautious stance ahead of crucial inflation data that could provide insights into the Federal Reserve's future monetary policy direction.

The gold market experienced significant momentum on Tuesday, reaching its highest level in over two weeks as investors sought refuge in the precious metal amid growing uncertainty surrounding Federal Reserve leadership. This rally reflects broader concerns about monetary policy stability and its implications for global financial markets.

Gold prices remained resilient on Monday, August 25, 2025, with spot gold trading at $3,372.67 per ounce as of 1:45 p.m. ET, holding near its two-week peak reached on August 11. December gold futures closed marginally lower at $3,417.50, down just 0.03%, reflecting the market's stability amid competing forces.

Federal Reserve Policy Drives Market Sentiment

Federal Reserve Chairman Jerome Powell's highly anticipated address at the Jackson Hole Economic Symposium delivered the dovish tone markets had been expecting, triggering significant movements across currency and commodity markets.

Over the last week the CME’s own FedWatch tool has quietly eroded away conviction for a September interest rate reduction. A week ago, the tool that utilizes positions made by futures traders to form a surprisingly accurate prediction of odds for what interest rates will be at any given month for up to 16 months into the future. 

The precious metals market experienced significant movement today as gold futures climbed $31 to approximately $3,390 per ounce, coinciding with the 2:00 PM ET release of the Federal Reserve's July FOMC meeting minutes. However, the timing of these gains suggests that factors beyond the Fed's policy deliberations drove the day's bullish momentum.

Today's trading session witnessed a synchronized decline across precious metals and equity markets, with gold futures experiencing their most significant technical breakdown in weeks while technology stocks led a broader market retreat.

Moving headlines, with the precious metal forming its fourth doji or spinning top candlestick in the past five trading sessions. These technical formations typically emerge during periods of market indecision, characterized by minimal price movement between opening and closing levels.

Gold markets experienced their most significant weekly decline since June, with prices falling over 2% as investors navigated conflicting economic data and policy developments.