Warsh's Speech Set to Spark Gold Price Volatility as Inflation Concerns Linger

Gold prices have retreated from their highs of $4,700 as investors await Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium. The recent US PCE data showed that headline PCE rose 3.7% year-over-year, exceeding market expectations.

The Fed's current policy division and high inflation levels have led to speculation about a potential rate hike in September. Kansas City Fed President Jeffrey Schmid emphasized that inflation remains 'sticky' and the Fed must continue working to bring it back to the 2% target.

Warsh's speech is expected to provide further clues on the Fed's policy framework. If he signals that PCE remains too high, market expectations for a September rate hike could increase, putting pressure on gold prices.