Warsh's Inflation Comments Spark Gold Price Rise Amid Fed Uncertainty

Gold prices rose slightly on Thursday as markets digested US Federal Reserve Chairman Kevin Warsh's comments on inflation after the central bank kept interest rates unchanged at its latest policy meeting.

Spot gold was up 0.4 per cent to $4,080.38 per ounce, while US gold futures for August delivery gained 1.1 per cent to $4,078.

The Federal Reserve left interest rates unchanged on Wednesday, with Warsh reaffirming the central bank's commitment to bringing inflation under control.

This has left markets uncertain about its next policy move, and investors are now pricing in a 57 per cent chance of a rate hike in September, down from around 81 per cent prior to the policy statement.