Gold Prices Flat as Markets Await Warsh’s Jackson Hole Remarks
Gold prices were largely unchanged on Friday as investors remained on the sidelines ahead of a closely watched speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium, looking for fresh signals on the future direction of U.S. interest rates.
Spot gold traded flat at $4,600.19 per ounce as of 13:50 WIB, while U.S. gold futures slipped 0.3% to $4,651.41 per ounce.
Bullion recently touched a three-month high near $4,700 per ounce earlier this week, supported by concerns over U.S. fiscal policy and Treasury initiatives aimed at strengthening demand for long-term government bonds.
However, the precious metal is still on track to post a slight weekly loss after recording gains for three consecutive weeks.
Investors Await Key Jackson Hole Signals
Gold struggled to extend its recent rally as traders adopted a cautious stance ahead of Warsh’s speech, scheduled for 21:00 WIB on Friday.
The address marks Warsh’s first major appearance as Federal Reserve Chair at the annual Jackson Hole gathering, an event closely monitored by global markets for insights into inflation, monetary policy, and the Fed’s interest-rate outlook.
Recent economic data have added uncertainty to expectations for monetary easing. The latest Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred measure of inflation, rose 3.7% year-over-year in July, increasing speculation that the central bank could still deliver additional rate hikes this year.
According to the CME FedWatch Tool, markets are currently pricing in a 34% probability of a rate increase in September and a 74% chance of a hike by December.
Higher interest rates typically pressure gold prices because the non-yielding asset becomes less attractive relative to interest-bearing investments.
Gold Supported by Broader Market Trends
Despite Friday’s muted trading, the broader environment remains supportive for gold.
The metal has benefited from lower Treasury yields and a weaker U.S. dollar in recent weeks, reducing the opportunity cost of holding bullion and making it more affordable for investors using other currencies.
As a result, gold has gained more than 13% during August, highlighting continued investor demand amid economic uncertainty and shifting expectations for Federal Reserve policy.
Silver, Platinum, and Copper Move Higher
Among other precious metals, silver advanced 1.3% to $70.11 per ounce, while platinum climbed 1.8% to $1,882.60 per ounce.
In the industrial metals market, benchmark London Metal Exchange (LME) copper futures rose 0.4% to $14,338.15 per metric ton, while U.S. copper futures added 0.2% to $6.68 per pound, supported by resilient demand expectations and broader commodity market strength.