Gold Steady, Silver Surges Ahead of Warsh Speech and Payroll Revision
Spot gold prices were steady on Friday as investors awaited Fed Chair Kevin Warsh's Jackson Hole address and the Labor Department's preliminary benchmark revision for payrolls. Meanwhile, spot silver prices surged 1.50% to $70.170 per ounce.
The market is positioning ahead of these events, which could impact interest rates and inflation expectations. A hawkish tone from Fed Chair Warsh or a smaller-than-expected payroll revision would likely bolster yields and limit upside for gold, while a dovish tone or a substantial downward revision would reinforce the case for holding rates.
Market pricing implies a 34% likelihood of a September rate increase and about a 74% chance of at least one hike by December. Yields on 10-year and 30-year Treasuries remained near multiyear peaks, but were largely steady.