Gold Bounces Back as Markets Eye Fed Chair Warsh's Comments

Gold prices have firmed up on Thursday after a more than 1% drop in the previous session, as investors await comments from U.S. Federal Reserve Chair Kevin Warsh at this week's Jackson Hole symposium.

The spot price of gold has increased by 0.5% to $4,615.27 per ounce, while U.S. gold futures have risen by 0.4% to $4,669.50.

This comes as annual U.S. inflation held steady in July at a rate well above the Federal Reserve's 2% target for the 65th straight month, adding to the central bank's debate over whether interest rates should be hiked or left steady.

The markets are assigning a 36.5% probability of a September U.S. rate hike and a 72.7% chance by December, according to the CME FedWatch Tool.