• Fed Chair Powell to deliver Jackson Hole address at 1400 GMT
• Markets put chance of Fed rate cut next month at 71%
• Dollar gains as traders rethink rate cut bets

Aug 22 (Reuters) - Gold slipped on Friday due to a firmer dollar, with markets awaiting U.S. Federal Reserve Chair Jerome Powell's speech at the annual Jackson Hole symposium for more insight on the Fed's monetary policy path.

Spot gold was down 0.2% at $3,330.70 per ounce by 1058 GMT, while U.S. gold futures for December delivery were 0.4% lower at $3,372.70.

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The dollar index (.DXY) , opens new tab rose to a near two-week high, making gold more expensive for overseas buyers, as investors pared back expectations for a Fed rate cut in September.

UBS analyst Giovanni Staunovo said the moderately stronger dollar was playing an important role in gold's dip today, while Fed officials' comments pointed to the next FOMC meeting "being an intense one, with some favouring large cuts, while others (favour) no move at all."

Fed officials on Thursday appeared lukewarm to the idea of a rate cut next month as investors geared up for Powell's speech, due at 1400 GMT on Friday.

Futures markets indicate a 71% chance of a quarter-point rate cut next month, according to CME's FedWatch tool. Non-yielding bullion tends to do well in a low interest rate environment.

"The cut is priced in, but Powell will keep all options on the table and not commit to any decision," Staunovo added, "There is a lot of data between now and the next Fed meeting and clarity on potential revisions when the BLS is reviewing historical data is also needed."

Recent labour market data showed U.S. jobless claims rose last week by the most in nearly three months, while unemployment claims the previous week hit a near four-year high.

The challenge for Fed policymakers is that even though there are signs of labour market weakening, inflation remains above the central bank's 2% target and could go higher due to the Trump administration's aggressive tariff hikes.

Elsewhere, spot silver was down 0.4% at $38 per ounce, platinum fell 1.3% to $1,335.31, and palladium fell 0.2% to $1,108.59.

https://www.reuters.com/world/china/gold-slips-dollar-firms-spotlight-powells-jackson-hole-remarks-2025-08-22/