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Gold Prices Ease Ahead Of Powell's Speech

Gold prices fell slightly on Thursday and the dollar held gains, as investors await cues from a key central bankers' gathering in the United States on Friday, where Federal Reserve Chairman Jerome Powell will speak for the first time since bond markets hit the recession alarm bells.

Spot gold declined 0.4 percent to $1,496.59 per ounce while U.S. gold futures were down 0.6 percent at $1,506.35 an ounce.

After the Fed's most recent meeting failed to provide clarity about further U.S. interest rate cuts, investors are now waiting to see if Powell will signal a rate cut at the September meeting.

Futures are fully priced for a quarter-point cut in rates next month, and over 100 basis points of easing by the end of next year.

Traders are also looking at the Group of Seven summit this weekend for clues on what additional steps policymakers may take to boost economic growth as a result of growing trade tensions between the world's two largest economies.

Hours after accusing the Fed of hindering economic growth, U.S. President Donald Trump told reporters at a White House briefing on Wednesday that the economy is very strong and there is no need to cut payroll taxes.

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