Gold prices (XAUUSD:CUR) traded near a recent record high on Monday as investors awaited the release of the minutes of the Federal Reserve’s latest meeting on Wednesday and Chairman Jerome Powell’s speech in Jackson Hole for more clarity on the possibility a rate cut in September.

Gold prices rose to a new all-time high on Friday, breaking above the $2,500 mark, driven by optimism over rate cuts and encouraging U.S. data releases. Gold (XAUUSD:CUR) declined on the day. -0.3% to USD 2,500.66 per ounce to 5:45 a.m. ET.

Jerome Powell is scheduled to deliver an economic outlook speech next Friday, the first full day of the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming.

The President of the Fed Bank of Chicago, Austan Goolsbee, said that the US economy shows no signs of overheating and that central bank officials should therefore be wary of maintaining their restrictive policy longer than necessary.

Although gold bars are considered a hedge against geopolitical and economic uncertainties, their value also tends to rise in a low interest rate environment.

Oil prices, meanwhile, fell on persistent demand concerns, extending their losses from the previous session. Recent economic data from China showed a slowdown in growth and a rise in unemployment, prompting Chinese refiners to reduce their crude processing rates. Weakness in China was also cited by OPEC and the International Energy Agency as they cut their forecasts for oil demand growth.

“China, the world’s largest consumer of commodities, remains weak due to a persistent slump in the real estate market, rising unemployment and weak consumption,” said Ole Hansen of Saxo Bank.

“From a demand perspective, these developments should prompt caution in the commodities sector. However, the supply side of key commodities could be supported by geopolitical events, adverse weather conditions, strikes and the weakest hedge fund positioning in more than a decade, which could trigger new demand and technical support.”

In the energy market, buyers returned to crude after a slump in previous weeks that saw net long positions for Brent fall to a record low. The three fuel contracts were boosted, mainly by short covering, while the rally in natural gas met with a muted response from speculators, Hansen added.

Elsewhere, stocks in the grain sector remain severely understocked, mainly due to the abundant supply of soybeans.

Hansen further noted that grain sales have regained momentum after the U.S. Department of Agriculture raised its forecasts for U.S. production, particularly for soybeans. “Overall, the world is drowning in old and soon new crops, encouraging speculators to hold and increase already large short positions, particularly in soybeans, followed by corn.”

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