Warsh Speech Sparks Gold Price Volatility Ahead of Jackson Hole

Gold prices pulled back to around $4,576 on Friday ahead of the speech from Fed Chair Kevin Warsh at Jackson Hole. The market is cautious about a potential hawkish tone from Warsh, which could increase the dollar and US Treasury yields, making gold less attractive.

The current inflation data has kept rate-hike risks alive, with a 33.9% chance of a hike in September. However, if Warsh leans towards balancing, it could lead to a pause in tightening, supporting gold prices.

Central banks and ETF demand remain constructive for gold, with Poland, China, and Uzbekistan and Kazakhstan active buyers. The Treasury's expansion of long-dated bond purchases has also contributed to the recent gold rally.