Gold holds near US$4,600 as investors focus on US Fed rate-hike path
Economists, policymakers divided over the need to hike rates in the coming months
Published Fri, Aug 28, 2026 · 08:46 AM
GOLD steadied near US$4,600 an ounce as investors weighed the outlook for US interest rates ahead of a key speech by US Federal Reserve chairman Kevin Warsh.
Bullion was little changed after adding 0.2 per cent in the previous session but remained on track for its biggest monthly gain since 1999.
The metal was given fresh impetus by the US Treasury’s surprise intervention in the bond market, which revived interest in the so-called debasement trade that helped power gold’s record-breaking rally in 2025.
Investors will be seeking clues to the US Fed’s approach to inflation when Warsh makes his first major speech as chairman later on Friday (Aug 28). The much-anticipated address at the US central bank’s annual Jackson Hole symposium offers Warsh an opportunity to counter criticism that he has not been forthright with his views on the economy.
Economists and policymakers are divided over the need to hike rates in the coming months, which would be a headwind for non-yielding gold. Though US Fed officials kept borrowing costs unchanged in July, three dissented in favour of a quarter-point hike.
At Jackson Hole on Thursday, two central bank officials said interest-rate setting was not restraining the US economy at a time when inflation continues to run above a 2 per cent target, urging their peers to act soon to cool price pressures. But US Fed Bank of Boston president Susan Collins said there is evidence that rates are “mildly restrictive.”
Gold’s marked rebound – the metal is on track to gain nearly 14 per cent in August – has been supported by a broad range of investor participation. Bullion-backed exchange-traded funds tracked by Bloomberg added more than 28 tonnes in the week ended Aug 23, the most since January, followed by a further 20 tonnes so far this week. Central banks have also stepped up purchases.
Spot gold rose 0.1 per cent to US$4,603.23 an ounce at 7.15 am in Singapore. Silver also climbed 0.1 per cent to US$69.28 an ounce. Platinum and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US dollar, slipped 0.1 per cent. BLOOMBERG
