Gold prices fell on Friday as investors awaited remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium.
Spot gold fell 0.5% to $4,576.30 an ounce by 01:57 GMT, after reaching its highest level in more than three months earlier this week following the U.S. Treasury Department’s announcement of measures to support long-term bonds. U.S. gold futures declined 0.8% to $4,629.00 an ounce.
Matt Simpson, senior analyst at StoneX, said the factors pushing Warsh toward a hawkish stance were stronger than those supporting a less restrictive position.
According to CME Group’s FedWatch tool, traders see a 33.9% probability of a U.S. interest-rate hike in September, rising to 74% by December.
Although gold is generally viewed as a hedge against inflation, it tends to come under pressure when interest rates are high because it does not generate income.
Among other precious metals, spot silver fell 1% to $68.54 an ounce, while palladium declined 0.8% to $1,339.84. Platinum fell 0.6% to $1,834.83 and was on track for a weekly loss.
Reuters
