Gold Rebounds Despite Hawkish Fed Signals as US Inflation Data Looms

Gold prices have resumed their rally in September despite hawkish signals from the Federal Reserve and stronger US employment data. The metal has rebounded after falling towards $4,450 last week, suggesting that buyers are still willing to defend lower levels.

The recent correction followed a speech by Federal Reserve Chair Kevin Warsh at Jackson Hole, where he delivered a more hawkish message than expected. Warsh emphasized the strength of the US economy and underlying inflation concerns, reinforcing expectations for tighter monetary policy. Stronger-than-expected NFP employment data last week also added to those concerns.

However, gold's broader bullish structure remains intact due to persistent Chinese demand, geopolitical uncertainty, and expectations that monetary-policy conditions could eventually become more supportive. The next major test for gold will come from US inflation data this week, with hotter-than-expected readings potentially strengthening the dollar and reinforcing expectations for tighter Fed policy.