Minutes after the speech, investors pegged the chances of a quarter-point interest rate cut at 91%, up from a 75% chance assessed one day earlier, according to CME FedWatch Tool, a measure of market sentiment. Despite the market's positive reaction to Powell's speech, the Fed chair voiced a note of caution for the outlook for the U.S. economy.

He highlighted that while the labor market remains strong and the economy continues to demonstrate 'resilience,' downside risks are building.

World shares are mixed after Wall Street fell to a fifth straight loss, and as traders look for cues about U.S. monetary policy from a meeting of central bankers in Jackson Hole, Wyoming

Gold was little changed on Thursday as investors awaited cues on the Federal Reserve's policy outlook ahead of the annual economic symposium at Jackson Hole, Wyoming, which starts later in the day. Spot gold was down 0.

According to Bloomberg Economics, "Federal Reserve Chair Jerome Powell has the opportunity to settle the speculation with his speech at the annual Jackson Hole Symposium", but economists Anna Wong, Stuart Paul, Eliza Winger, Estelle Ou and Chris G. Collins think he won't be as frank this year.