Gold Bulls Ride Wave of Anticipation Ahead of Jackson Hole

Gold prices have rebounded above $4,630 as traders prepare for Kevin Warsh's speech at Jackson Hole on Friday. The market has been moving in anticipation of Warsh's first address, with investors looking for his views on balancing inflation against slower employment numbers and high yields.

The recent U.S. PCE inflation data showed headline and core PCE rates remaining above the Fed's target, but it didn't trigger a significant increase in expectations for a September rate hike. The probability of a September hike remains at around 36.5%, while a December hike is more probable at 72.7%.

Gold has been holding steady despite restrictive monetary policies and rising Treasury yields, with speculators positioning themselves against U.S. fiscal policies rather than changing interest rates. Central banks' continued gold buying and ETF inflows have also supported the metal's price.