Gold relatively steady after friday jump

25 August 2025

Today’s markets analysis on behalf of Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade

 

Gold held relatively steady on Monday after posting a significant increase on Friday, when a dovish shift from Federal Reserve Chair Jerome Powell at Jackson Hole lifted the precious metal. Powell signalled that risks to the labour market are increasing, even as inflation remains elevated, and suggested that the Fed may need to adjust its restrictive stance, weighing down on US treasury yields and benefiting the precious metal.

Futures markets are now nearly pricing in a 25bps move in September and another in December, which could leave gold well supported. However, the upcoming US GDP growth and PCE data will be key in determining the Fed’s policy path. Softer inflation and weaker growth data could help drive gold prices to the upside.

On the market side, gold-backed ETF flows have been showing mixed patterns, reflecting investor caution recently. While Asian markets recorded outflows, other regions remained more bullish, highlighting uneven physical demand trends that could temper momentum.

Geopolitical tensions continue to provide support. Russia claimed the capture of two more villages in Donetsk, while Ukraine vowed to keep fighting and launched fresh drone strikes on Russian infrastructure, including a fire at a nuclear facility in Kursk. At the same time, escalating violence in Gaza has added to the broader risk environment.

 

Zaid Barem / ymm