Gold Prices Sink Ahead of Jackson Hole Remarks
Gold prices fell on Friday as investors awaited Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole symposium, with recent warnings from Fed officials over inflation adding to pressure on the precious metal.
Spot gold was down 0.5% at $4,576.30 per ounce by 0157 GMT, after touching a more than three-month high earlier this week following the US Treasury's announcement of support measures for long-duration bonds.
US gold futures eased 0.8% to $4,629. Matt Simpson, senior analyst at StoneX, said the case for a hawkish stance from Warsh appeared stronger, which could push gold lower from its recent highs in the near term.
However, he noted that any decline could attract buyers who had missed the initial rally and were targeting the $5,000 level. Higher interest rates generally weigh on gold because the non-yielding asset becomes less attractive compared with interest-bearing investments.