Gold Prices Hold Firm Ahead of Jackson Hole Speech
Gold prices held steady on Thursday for the second consecutive session as traders took profits after reaching a three-month peak earlier in the week. The market is eagerly awaiting Federal Reserve Chair Kevin Warsh's speech at Jackson Hole to gain insight into his roadmap for inflation and monetary policy.
Sport gold was up 0.06% at $4,594.82 per ounce by 1502 GMT after settling 1.4% lower on Wednesday in its biggest one-day decline in a week. US gold futures for December delivery fell 0.1% to $4,648.60.
Market analyst Jim Wyckoff said that profit-taking pressure from shorter-term futures traders was contributing to the stability of gold prices ahead of Warsh's speech on Friday. Selling interest is being limited by a weaker dollar index today, but mostly just treading water ahead of this Jackson Hole meeting, Wyckoff added.
The recent rally in gold prices has been driven by renewed concerns over dollar-debasement following the US Treasury's move last week to ramp up buybacks of older long-dated bonds. Markets are looking forward to Warsh's remarks at the annual Jackson Hole symposium in Wyoming on Friday, where he is expected to explain his strategy for returning inflation to the Fed's target and the bond market's role in that strategy.