Warsh Set to Spark Gold Volatility at Jackson Hole

Gold prices slipped below $4,600 on Friday as investors reduced risk ahead of Federal Reserve Chair Kevin Warsh's keynote speech at the Jackson Hole Economic Policy Symposium. The metal retreated to around $4,588 an ounce in later Asian dealings after falling to about $4,576 earlier, while US futures were near $4,629.

Markets are looking for clues on how the Fed will respond to inflation that remains well above target and whether July's decision to hold rates was a pause or simply a delay before another increase. OCBC strategist Christopher Wong told The Wall Street Journal that Jackson Hole could move the dollar, yields, and precious metals.

A balanced message from Warsh could help bullion stabilize, while a more hawkish tone would likely lift yields and pressure the non-yielding metal. Rate markets still see roughly a one-in-three chance of a September hike, with the probability of an increase by December much higher.