Gold Prices Rebound Modestly Ahead of Warsh Speech
Gold prices experienced a modest rebound on Thursday after falling from a three-month high the previous day. The recovery was limited by slightly firmer U.S. Treasury yields and a stable dollar.
The metal came under pressure Wednesday due to July's PCE data, which showed headline inflation at 3.7% year-on-year versus an expected 3.6%. Core PCE held steady at 3.3%, as forecasted.
The PCE data had a mixed impact on the market's expectations of a Fed rate hike, with some analysts suggesting it could still happen this year. However, if a hike does occur, it may weigh on gold prices to some extent.
Market attention is now focused on Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday. A balanced tone from Warsh could support gold prices, while hawkish remarks may lift yields and put pressure on the metal.