Gold Holds Steady Ahead of Jackson Hole as Markets Wait for Fed Clarity
Gold prices remain stable around $4,600 as investors await clarity on Federal Reserve Chair Kevin Warsh's stance on inflation and interest rates at the Jackson Hole symposium.
The market is currently pricing in a 65% probability of no change in September's benchmark rate, but the possibility of another rate hike by December remains above 70%, following stronger-than-expected inflation data.
Warsh's speech will likely focus on whether he believes recent inflation setbacks are serious enough to keep tightening on the table, rather than making a precise forecast for September.
The tone of his assessment may be enough to move markets, with investors looking for signs that the Fed is still committed to tightening monetary policy or willing to delay it further due to economic risks.