Gold Steadies as Investors Await Warsh's Jackson Hole Speech

Gold prices steadied near $4,600 an ounce on Friday as investors weighed the outlook for US interest rates ahead of Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole symposium.

The precious metal is headed for its biggest monthly gain this century after advancing nearly 14% in August, with bullion-backed exchange-traded funds adding over 28 tons last week and a further 20 tons so far this week.

Warsh's speech will offer clues to the Fed's approach to inflation, which is a headwind for non-yielding gold. Economists and policymakers are divided over the need to hike rates in the coming months, with some arguing that policy is not restraining the US economy at a time when inflation continues to run above a 2% target.

Citigroup Inc strategist Dirk Willer said Treasury efforts to contain long-term borrowing costs could push investors out of steepeners and back into gold. He noted that steepeners, which had remained one of the few surviving expressions of the debasement trade, may not be the right trade to express fears about inflation.