Gold price lower as Fed Chair Powell on deck

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Gold last traded at $1,738 an ounce. Silver at $18.90 an ounce.

NEWS SUMMARY: Precious metal prices traded mixed Friday ahead of Fedspeak on a weaker dollar. U.S. stocks traded near flatline ahead of Powell's speech in Jackson Hole.

Kitco--"Gold prices are lower in early U.S. trading Friday. The marketplace is highly anticipating Federal Reserve Chairman Jerome Powell's Friday morning (10:00 a.m. Eastern time) speech at the Jackson Hole, Wyoming Federal Reserve annual symposium, which began Thursday.

Past Jackson Hole Fed meetings have significantly moved markets. Gold and silver traders are expecting from Powell comments that are bearish for metals markets: a hawkish lean for U.S. monetary policy and on the Fed's fight against inflation....

A hawkish U.S. monetary policy stance by Powell can be extrapolated into weaker U.S./global economic growth that would mean less demand for metals.

Also, hawkish rhetoric from Powell should be bullish for the U.S. dollar and for rising bond yields. However, many traders can correctly argue that Powell and other Fed officials have laid out their aggressive monetary policy tightening in recent weeks, and that should be 'baked into the cake' for markets.

It could be that the precious metals post a 'relief rally' if Powell in his remarks today does not get any more aggressive on Fed tightening."