Gold slips as Fed chief Warsh's Jackson Hole speech looms

Business Recorder reported that spot gold slid 0.5% to $4,576.30 an ounce by 0157 GMT on Friday, ahead of a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. The metal had climbed to a high above three months earlier this week, after the US Treasury announced measures aimed at long-dated Treasuries. US gold futures eased 0.8% to $4,629.00.

Matt Simpson of StoneX said the balance of risks points to a hawkish stance from Warsh, which could push gold further away from its cycle peaks in the near term. He argued that any decline may attract buyers who missed the first leg of the rally and want another attempt at $5,000. Fed officials voiced concern about US inflation on Thursday, a day after data showed the Personal Consumption Expenditures price index, the key inflation measure used by the Fed, at 3.7% in the 12 months through July.

The CME FedWatch tool put the odds of a US rate hike at 33.9% for September and 74% for December. Gold loses appeal when rates are high because it pays no yield, yet OCBC strategist Christopher Wong said growing ETF and futures participation, official-sector buying and concerns over US fiscal credibility continue to support the metal. Spot silver fell 1% to $68.54 per ounce.