Gold Steadies Near $4,600 Amid Inflation and Rate Hike Bets

The gold price has steadied near $4,600 an ounce after inflation data showed that prices remain above the Federal Reserve's target.

Investors are looking ahead to Federal Reserve Chair Kevin Warsh's speech at Jackson Hole for clues on interest rates. The latest U.S. inflation data, which rose 3.7% in the year through July, pushed the dollar higher and lifted Treasury yields, weighing on gold.

The Personal Consumption Expenditures price index remained above economists' forecast of 3.6%. Markets have responded by nudging up expectations for a September hike, with the probability now around 40%, up from about 36% before the data.

ANZ analysts said the debasement trade continues to attract buyers, citing signs of resilience in the broader U.S. economy and Treasury actions that have helped sustain the trade. The metal remains above its 200 day moving average and has seen strong inflows into gold-backed ETFs.