Gold Prices Recover as Warsh Pledges Fed Will Tackle Inflation

Gold prices steadied on August 30 after plummeting over 3% in the previous session. The rebound comes as US Federal Reserve Chairman Kevin Warsh reiterated that policymakers will work to return inflation to their 2% goal.

Warsh's pledge at the Fed's annual conference in Jackson Hole, Wyoming has lifted bets for a September rate hike. Traders are now pricing in a more than 50% chance of a hike at the central bank's next meeting.

Bullion was trading around $4,450 an ounce after falling the most since early June on Friday. The Fed's commitment to fighting inflation has sparked increased expectations for higher interest rates.