Gold Edges Higher Amid Uncertainty Over US Interest Rates

Gold prices rose slightly on Thursday as markets digested comments from US Federal Reserve Chairman Kevin Warsh following the central bank's decision to keep interest rates unchanged. Spot gold was up 0.4 per cent at US$4,080.38 per ounce, while US gold futures for August delivery gained 1.1 per cent to US$4,078.

The Fed's decision on Wednesday left investors uncertain about its next policy move, with markets initially pricing in a 57 per cent chance of a rate hike in September, down from around 81 per cent prior to the policy statement.

Investors are also awaiting June's Personal Consumption Expenditures (PCE) data, due later in the day, for further clues on the Fed's policy path. The Bank of England and the Bank of Japan are expected to keep rates unchanged this week, cautioning against inflationary pressures linked to the Middle East conflict.