Gold Prices Steady Around $4,600 as Traders Await Warsh's Speech
Gold prices held steady around $4,600 on Thursday as traders awaited US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium for cues on future policy path.
The Fed's outlook will play a key role in influencing US Dollar price dynamics and providing impetus to non-yielding bullion. However, despite hawkish expectations, US bond yields remain depressed due to the Treasury's buyback strategy.
Optimism over a potential US-Iran peace deal and the reopening of the Strait of Hormuz also capped the upside for the USD and offered support to gold. Iran's Deputy Foreign Minister Kazem Gharibabadi warned that the Strait will not fully reopen until the US fulfills its commitments under an interim peace deal signed in June.
Technical analysis suggests that upside momentum is still constructive but increasingly stretched, with a move beyond $4,700 and the 50% retracement level necessary for further gains. A deeper pullback could expose structural support around the cycle low at $3,956.35.