Gold, Bitcoin retreat as dollar gains strength; all eyes on Powell’s Jackson hole speech

Gold and Bitcoin prices slipped on Friday, weighed down by a stronger U.S. dollar and renewed uncertainty over the Federal Reserve’s monetary policy trajectory.

Investors worldwide are bracing for Fed Chair Jerome Powell’s keynote address at the annual Jackson Hole Economic Policy Symposium, a speech widely expected to shape market sentiment for the weeks ahead.

Spot gold fell 0.2% to $3,333.01 per ounce in early Asian trade, while U.S. gold futures for December delivery dipped 0.2% to $3,376. The decline follows a rebound earlier this month when bullion approached record highs amid escalating geopolitical tensions and recession fears.

The primary drag on gold today is the resilient dollar, which remains near a two-week peak. A stronger greenback erodes the appeal of gold for overseas buyers, limiting the upside potential for the metal often touted as the ultimate hedge against inflation and economic turmoil.

Market attention is firmly fixed on Powell’s upcoming remarks at 14:00 GMT, which could clarify whether the Fed is leaning toward cutting rates this year—or holding steady to tame inflation.

“If Powell’s tone is less dovish than markets expect, the dollar could strengthen further and gold could slide,” Tim Waterer, Chief Market Analyst at KCM Trade told CNBC. “But if he signals policy easing, that would reverse USD strength and potentially spark a gold rally.”

Recent U.S. data painted a mixed picture. Jobless claims rose last week by the most in nearly three months, signaling some cooling in the labor market. However, inflation remains above the Fed’s 2% target, partly fueled by higher tariffs on imported goods imposed by the Trump administration.

Markets are pricing in a 75% probability of a quarter-point rate cut in September, according to the CME FedWatch tool, but the Fed’s own messaging has been cautious. Several policymakers on Thursday hinted that September might be too soon for cuts, adding to market jitters.

Other Precious Metals
Silver: Down 0.2% to $38.08 per ounce
Platinum: Down 0.9% to $1,341.46
Palladium: Up 0.2% to $1,112.92

These moves reflect the same macro pressure, dollar strength and interest rate uncertainty, affecting gold.

Bitcoin: Profit-Taking and Leveraged Liquidations Pressure Crypto

The weakness wasn’t confined to traditional safe havens. Bitcoin slipped to $112,980 at 10 a.m. Friday, its lowest in two weeks, after trading near $113,860 earlier in the day, based on CoinMarketCap data. Ethereum also edged down 0.1% to $4,232, while the broader crypto market cap fell to $3.92 trillion, with $160 billion traded in 24 hours.

The latest downturn comes just a week after Bitcoin hit $124,000 on August 14, fueled by optimism around pro-crypto regulatory reforms and strong risk sentiment in U.S. equity markets. Analysts attribute the recent pullback to profit-taking, deleveraging in futures markets, and broader risk-off sentiment as investors await Powell’s speech.

Despite the volatility, Bitcoin is still one of 2025’s standout performers, buoyed by regulatory clarity under the Trump administration, which has embraced digital assets as part of its economic strategy.