Gold Prices Slump Ahead of Warsh's Hawkish Jackson Hole Speech
The price of gold slipped on Friday (Aug 28) as market participants awaited remarks from US Federal Reserve chair Kevin Warsh at the Jackson Hole symposium.
Spot gold fell 0.5 per cent to $4,580.19 per ounce by 0438 GMT, after reaching a more than three-month high of $4,696.18 on Tuesday, following the US Treasury's announcement of support measures for long-duration bonds.
Matt Simpson, a senior analyst at StoneX, said that the case for Warsh to lean hawkish is greater than the case for him not to, and that could see gold retreat further from its cycle highs in the near term. However, he also expects any dip to be viewed favourably by bulls who missed out on the first phase of the rally.
US Fed officials shared their ongoing concerns about the US inflation landscape at the symposium, with traders seeing a 33.7 per cent chance of a US rate hike in September and a 74.2 per cent chance by December, according to the CME FedWatch tool.