Gold Dips Ahead of Warsh's Hawkish Speech at Jackson Hole

Gold prices slipped on Friday as investors awaited remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Spot gold fell 0.5% to $4,576.30 per ounce by 0157 GMT after hitting a more than three-month high earlier in the week.

The U.S. Treasury's announcement of support measures for long-duration bonds had driven gold prices higher earlier this week.

However, with Warsh's speech looming, market participants are expecting him to lean hawkish, which could see gold retreat further from its cycle highs in the near term, according to Matt Simpson, a senior analyst at StoneX. He noted that any dip in gold prices would be viewed favorably by bulls who missed out on the first phase of the rally.

Despite its role as an inflation hedge, gold tends to lose appeal in a high interest rate environment as it offers no yield. However, the metal remains supported by improving participation in exchange-traded funds and futures, along with concerns over U.S. fiscal credibility and continued official-sector buying.