Gold Prices Stable Ahead of Jackson Hole Symposium
The gold market remained relatively stable on Friday as investors awaited Fed Chair Kevin Warsh's speech at the Jackson Hole symposium. Spot gold prices were down 0.02% at $4,600.07 per ounce by 13:02 GMT, following a more than three-month high of $4,696.18 on Tuesday.
The US Treasury's announcement of support measures for long-duration bonds had previously boosted gold prices, but traders are now hesitant to make large bets ahead of Warsh's remarks. Market analyst Fawad Razaqzada said, 'Basically ahead of Kevin Warsh's remarks, traders are not willing to build any large positions, which kind of explains why markets haven't really moved that much in recent times.'
The Fed officials' comments on inflation have also had an impact on gold prices. Kansas City Fed President Jeffrey Schmid and Cleveland Fed President Beth Hammack reiterated the need for interest rates to rise to curb inflation, with a 36% chance of a US rate hike in September according to the CME FedWatch tool.