Gold marginally up at close thanks to stock fluctuations

Gold prices ticked up at settlement today, Aug. 22, amid stock market fluctuations with markets anticipating the Jackson Hole meeting on Aug. 24.

Bullion for December delivery inched 0.15% higher, or $3, to finish at $1,926 an ounce.

In a research note, Commerzbank wrote, “Gold will doubtless find it difficult to come out of the defensive in the near future. That said, sentiment is now already so bearish that it wouldn't take much to spark a price recovery.”

Elsewhere, Richmond Federal Reserve President Thomas Barkin pointed out that the US central bank needs to defend the 2% inflation target to ensure its own credibility remains intact with the public.

In an interview with CNBC, Allianz Chief Economic Advisor Mohamed El-Erian highlighted that Fed Chair Jerome Powell would mostly focus on "short-term monetary policy issues” in his remarks from Jackson Hole, Wyoming, later this week.

Meanwhile, data from the National Association of Realtors (NAR) showed that existing home sales fell 2.20% in July on a monthly basis to a seasonally adjusted annual rate of 4.07 million properties, against estimates for a decline to 4.15 million.

"Two factors are driving current sales activity — inventory availability and mortgage rates," said Lawrence Yun, NAR's chief economist. "Unfortunately, both have been unfavorable to buyers."

On the other hand, S&P Global cut the credit ratings of five regional US banks and signaled a negative outlook for several others, citing concerns over the "tough" lending environment. In a research note, the rating agency lowered the grades one notch for KeyCorp, Comerica Bank, Valley National Bancorp, UMB Financial Corp. and Associated Banc-Corp.