Gold Edges Higher as Investors Await Warsh's Jackson Hole Speech

Gold prices edged higher on Thursday, holding near $4,600 an ounce as investors looked ahead to Federal Reserve Chair Kevin Warsh's speech at Jackson Hole for clues on the path for interest rates.

The metal pulled back after ending Wednesday down 1.4%, snapping a five-session winning streak, following the release of U.S. inflation data that showed price pressures remained well above the Federal Reserve's target.

The Personal Consumption Expenditures price index rose 3.7% in the year through July, unchanged from June and slightly above economists' 3.6% forecast, pushing the dollar higher and lifting Treasury yields, two moves that typically weigh on gold because it pays no interest and is priced in dollars.

Markets have responded by nudging up expectations for a September hike, with the probability of at least a 25 basis point increase now around 40%, up from about 36% before the data, while traders still expect rates to rise by year end.