Aug 20 (Reuters) - Gold rose on Wednesday as the U.S. dollar eased, while market participants braced for the minutes of the U.S. central bank's last policy meeting and upcoming Jackson Hole symposium for clues on future interest rate moves.
Spot gold was up 0.8% to $3,341.50 per ounce, by 11:37 a.m. EDT (1537 GMT) after hitting its lowest level since August 1 earlier. U.S. gold futures gained 0.8% to $3,386.10.
The U.S. dollar eased, making dollar-priced-bullion more affordable for other currency holders.
The Federal Reserve July meeting minutes, due at 2:00 p.m. EDT, will be released two days ahead of Fed Chair Jerome Powell's speech at the annual Jackson Hole economic symposium on Friday.
Last month's decision by the Fed to hold interest rates unchanged prompted dissent from two central bankers, who wanted to lower rates to guard against further weakening of the job market.
"Gold prices fell yesterday, so now traders are looking at it as an opportunity to get into gold ahead of the Fed minutes," said RJO Futures market strategist Bob Haberkorn.
"If Powell is dovish, it's bullish for gold, as it does not bear interest. It will need to break through $3,350/oz and then ultimately retest $3,400/oz if he's dovish," he added.
Traders currently expect an 85% chance of a quarter-point rate cut in September, according to the CME FedWatch tool.
Meanwhile, U.S. President Donald Trump called on Fed Governor Lisa Cook to resign, intensifying his effort to gain influence over the central bank on the basis of allegations made by one of his allies about mortgages Cook holds in Michigan and Georgia.
Goldman Sachs maintained its $4,000/toz mid-2026 forecast, citing structurally strong central bank demand, ETF inflows supported by Fed easing, and a 30% probability of a U.S. recession within 12 months.
Among other metals, spot silver rose 1.1% to $37.76 per ounce, platinum gained 2.5% to $1,338.39 while palladium fell 0.6% at $1,108.59.
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shreya Biswas
