Gold edges lower below $4,600, all eyes on Jackson Hole Symposium
Gold price (XAU/USD) attracts some sellers to around $4,580 during the Asian trading hours on Friday. The precious metal retreats from a three-month high as in-line US inflation data has reinforced the possibility of further Federal Reserve (Fed) rate hikes.
Gold prices dipped below $4,600 on Friday, as traders await Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Economic Symposium. The U.S. inflation data remained steady at 3.3% YoY in July, meeting expectations from the Fed. This stability in inflation may keep the central bank's interest rates from increasing in September, which could be negative for gold prices.
Iran's willingness to negotiate terms for reopening the Strait of Hormuz could also impact oil prices and inflation, potentially providing some relief to gold prices. Technical analysis shows gold maintaining a bullish bias as it trades above key moving averages, but a more hawkish tone from Fed Chair Warsh could cause a reversal in sentiment for the precious metal.
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