Gold Slumps Ahead of Fed Chair Warsh's Jackson Hole Speech

Gold prices fell on Friday as investors awaited the Jackson Hole symposium speech from Federal Reserve Chair Kevin Warsh. Spot gold dropped 0.5% to $4,580.19 per ounce by 0438 GMT.

The US Treasury's announcement of support measures for long-duration bonds had sent gold soaring to a three-month high on Tuesday at $4,696.18.

Analysts expect Warsh's speech to be hawkish, potentially driving gold prices lower in the near term. However, Matt Simpson from StoneX believes any dip will be seen as a buying opportunity by bulls who missed out on the initial rally.

Traders see a 33.7% chance of a US rate hike in September and a 74.2% chance by December, according to the CME FedWatch tool.