Warsh Speech Looms Large for Gold as Inflation Data Weighs on Metal

Gold prices steadied near $4,600 an ounce on Thursday as investors looked ahead to Federal Reserve Chair Kevin Warsh's speech at Jackson Hole for clues on interest rates. The metal had pulled back after ending Wednesday down 1.4%, snapping a five-session winning streak.

The decline followed the release of U.S. inflation data that showed price pressures remained well above the Federal Reserve's target, pushing the dollar higher and lifting Treasury yields. This typically weighs on gold because it pays no interest and is priced in dollars.

Markets have responded by nudging up expectations for a September hike, with the probability of at least a 25 basis point increase now around 40%, up from about 36% before the data.