Gold Steadies Near $4,600 as Warsh Speech Looms

Gold prices regained some lost ground on Thursday, stabilizing near $4,600 an ounce as investors awaited Federal Reserve Chair Kevin Warsh's speech at Jackson Hole for clues on interest rates. The US inflation data released earlier this week showed price pressures remained above the Fed's target, lifting the dollar and Treasury yields.

The Personal Consumption Expenditures price index rose 3.7% in the year through July, unchanged from June but slightly above economists' forecasts. This led to increased expectations for a September rate hike, with the probability of at least a 25 basis point increase rising to around 40%. However, analysts note that the debasement trade remains strong, attracting buyers and limiting gold's downside.

Warsh's speech on Friday will be closely watched for any signals on how the Fed plans to address inflation and its impact on monetary policy. Investors also want clarity on the interaction between monetary policy and the bond market, particularly after the Treasury doubled its planned buybacks of longer dated debt.