Gold Commentary Aug 21 2025: Stay Updated on Market Trends Today
Trump's comments stirred uncertainty over rate cuts
Mumbai, Aug 21, 2025: Gold prices was pressured in the first half of yesterday's session but changed its course in the second as President Trump's comments regarding firing Fed Governor Cook increased uncertainty and expectations for rate cut. Dollar index was stable around 98 while USDINR inched slightly recovering from the fall it witnessed earlier.
The two Federal Reserve policymakers who dissented against last month's decision to keep interest rates unchanged - Vice Chair for Supervision Bowman and Governor Waller - appeared to be alone in advocating for a rate cut, as suggested in the meeting minutes yesterday.
Minutes of the July Fed meeting showers that many Fed officials belive, full effect of tariffs could take sometime. Hence, many believed that inflation risk could outweigh employment risk. U.S. President Donald Trump called on Federal Reserve Governor Lisa Cook to resign over mortgage allegations, intensifying his effort to gain influence over the U.S. central bank. Focus now shifts to Governor Powell's speech at the Jackson hole symposium scheduled later this week.
Focus today will be on US PMI numbers, jobless claims, Philly fed manufacturing index and a few housing numbers.
by: Manav Modi, Analyst – Precious Metal Research, Motilal Oswal Financial Services Ltd
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