Warsh Speech Sparks Gold Sell-Off Ahead of Jackson Hole

Gold prices fell below $4,600 on Friday as investors reassessed their risk exposure ahead of Federal Reserve Chair Kevin Warsh's keynote speech at the Jackson Hole Economic Policy Symposium.

The metal retreated further from its three-month high this week, with spot gold trading around $4,588 an ounce in later Asian dealings and US futures near $4,629.

Bullion is set for a small weekly decline after a strong August rally driven by Treasury-market intervention, fiscal concerns, and renewed investor inflows.

The immediate question is whether Warsh will reinforce the Fed's inflation-fighting stance or provide enough flexibility to keep real yields from rising further.