Gold Steady Amid Jackson Hole Jitters and Rising Inflation Expectations

Gold prices remained steady around $4,600 an ounce on Friday as investors awaited Federal Reserve Chair Kevin Warsh's speech at the annual Jackson Hole symposium for clues about US interest rates.

The market is currently pricing in a 65% chance that the Fed will keep rates unchanged at its upcoming policy meeting in September. However, a hotter-than-expected US inflation reading strengthened expectations for a rate increase before year-end, with the probability of a hike by December remaining above 70%.

Gold continues to benefit from the so-called debasement trade as concerns over the risk of a US debt crisis and further dollar weakness persist. The US Treasury's expanded debt buybacks have heightened these concerns.