New Delhi, Aug 27: Gold prices edged higher on Thursday as investors remained cautious ahead of Federal Reserve Chair Kevin Warsh’s upcoming speech at the Jackson Hole Economic Symposium, with markets looking for fresh signals on the US interest-rate outlook.
Spot gold rose 0.2 per cent to around $4,599.57 per ounce, while US gold futures remained largely steady at $4,652.70. The precious metal continues to attract investor interest amid concerns over US debt levels and the long-term outlook for the dollar.
Market participants are closely watching Warsh’s speech for indications about the Federal Reserve’s approach to inflation and monetary policy. His comments could influence expectations for future interest-rate moves and, in turn, the direction of gold prices.
Recent US inflation data showed the Personal Consumption Expenditures price index rising 3.7 per cent year-on-year in July. The data has kept inflation and interest-rate expectations in focus as investors assess the Fed’s next steps.
Gold has also received support from continued concerns about the sustainability of US debt and potential pressure on the dollar. These factors have helped maintain demand for the precious metal as investors look for assets that can preserve value during periods of economic uncertainty.
The positive movement in gold comes after the metal reached a more than three-month high earlier this week before giving up some gains. Investors are now expected to remain focused on global monetary policy, currency movements and economic data for further direction.
With the Jackson Hole speech approaching, market participants are likely to closely track any changes in the Federal Reserve’s policy outlook. A cautious policy stance could support gold prices, while signals pointing towards tighter monetary conditions may create some pressure on the metal.
Overall, gold remains firmly in focus as investors balance inflation concerns, interest-rate expectations and broader economic uncertainties while awaiting clearer guidance from the US Federal Reserve.