Gold Retreats From Record as Traders Weigh Fedspeak, Await Data

Gold retreated after hitting a fresh record as investors weighed remarks from policymakers ahead of a key jobs report due Friday.

Minneapolis Fed chief Neel Kashkari said Thursday that interest-rate cuts may not be needed this year if progress on inflation stalls, especially if the economy remains robust. Meanwhile, Cleveland Fed President Loretta Mester separately suggested the central bank could be getting close to the level of confidence it needs to begin lowering rates within months.

Kashkari and Mester was among more than a half-dozen Fed officials that gave speeches or participated in moderated discussions on Thursday.

Other developments influencing the gold trade was a strengthening dollar that pushed bullion lower by as much as 0.9% to $2,279.88 an ounce. Despite the dip, the price was still close to record $2,305.64 reached earlier in the session.

The wave of commentary from Fed officials followed on remarks by Chair Jerome Powell a day earlier, when he offered assurances that it will likely be appropriate to begin lowering borrowing costs “at some point this year.

Expectations on when the Fed will start cutting rates have been the key price driver for precious metals, which don’t yield interest. Silver earlier jumped to the highest in almost three years before easing.