Gold Rises as Markets Await Fed Chair’s Remarks…
Gold prices rose on Thursday after falling more than 1% in the previous session, as markets awaited comments from Federal Reserve Chair Kevin Warsh later this week.
Spot gold rose 0.5% to $4,615.27 per ounce by 00:32 GMT, while U.S. gold futures gained 0.4% to $4,669.50.
Gold prices fell on Wednesday after data showed that U.S. inflation remained elevated. Annual inflation unexpectedly held steady in July at a level well above the Federal Reserve’s 2% target, marking the 65th consecutive month above that target.
The latest inflation figures are likely to intensify debate within the Federal Reserve over whether interest rates should be raised or left unchanged, particularly as the recent inflationary pressures linked to the Iran war show signs of persisting.
According to CME’s FedWatch tool, markets currently price in a 36.5% probability of a U.S. rate hike in September, rising to 72.7% by December.
Because gold does not generate interest income, it generally becomes less attractive when interest rates are high.
Warsh is scheduled to deliver remarks on Friday at the Jackson Hole economic symposium, where investors will closely watch his comments for clues about the future path of U.S. monetary policy.
On the geopolitical front, the Qatari prime minister is due to visit Tehran in an effort to revive diplomatic efforts after the United States and Iran exchanged threats, with Washington vowing to increase economic pressure on Tehran by targeting its trading partners with sanctions.
Among other precious metals, spot silver rose 1% to $68.77 an ounce, platinum gained 0.7% to $1,842.88, and palladium rose 0.3% to $1,332.34.
Reuters
