Gold slips early Friday, headed for a weekly loss as investors awaited remarks by Federal Reserve Chair Kevin Warsh for further direction.
Warsh will speak Friday as Fed policymakers and other central bankers meet at the Fed’s annual conference in Jackson Hole, Wyoming. Investors will look to him for signals on whether the Fed will continue to keep interest rates unchanged, as it has all year.
December gold futures rose 0.2% Thursday to settle at $4,664.00 an ounce on Comex, though the front-month contract declined 0.4% in the first four days of the week. Bullion is up 14% this month after gaining 1.7% in July, its first monthly increase since February, and sliding 12% in June. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently down $4.40 (-0.09%) an ounce to $4659.60 and the DG spot price is $4608.60.
Investors are hoping that Warsh will explain his plan for returning inflation to the Fed’s 2% inflation target after key U.S. data came in in line with expectations this week, supporting forecasts for a rate hold.
The personal consumption expenditures price index, the Fed’s favorite inflation measure, came in Wednesday with July data showing the 12-month inflation rate was 3.7% in July, unchanged from June but still well above the Fed’s target. Economists had forecast the figure to come in at 3.6%. Excluding volatile food and energy prices, core PCE advanced 3.3% year on year. The report also showed that consumer spending was flat in July after strong increases in May and June. The figures point to a cooling economy.
The reports bolstered the dollar and Treasury yields, capping any increase in gold prices.
The Fed closely watches both inflation and labor market data when setting interest rates. The monthly U.S. jobs report for August is due out next week.
Most investors are betting on the Fed keeping interest rates unchanged again in September, even though minutes of the last Fed policy meeting, which came out last week, indicated broader support for rate increases if inflation doesn’t go down. Keeping rates unchanged would likely be bullish for gold, as higher rates make gold a less attractive asset for investment.
Investors are also continuing to watch inflationary risk from the war in Iran and the subsequent closure of the Strait of Hormuz.
The central bank held interest rates steady at 3.5% to 3.75% last month, but dissenters signaled growing support for a rate hike in 2026. The Fed had previously been expected to raise rates next month.
About 65% of the investors tracked by the CME FedWatch Tool now expect rates will remain unchanged at the Fed’s next policy meeting in September, with the rest betting on a 25 basis point increase. The Fed has kept interest rates unchanged this year after three previous rate cuts.
December silver futures gained 2.1% Thursday to settle at $70.24 an ounce on Comex, though the front-month contract fell 0.2% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver is up 22% this month after sliding 3.6% in July and declining 21% in June. It lost 15% in the first half of 2026 after rising 141% last year. The December contract is currently up $0.986 (+1.40%) an ounce to $71.225 and the DG spot price is $71.06.
Spot palladium added 1% Thursday to $1,345.00 an ounce and is down 0.3% so far this week. Palladium is up 4.3% this month after adding 5.8% in July and dropping 11% in June. It retreated 25% in the first half of 2026 after rising 74% last year. The DG spot price is currently up $118.30 an ounce to $1463.00.
Spot platinum increased 0.6% Thursday to $1,850.60 an ounce and has declined 2% in the first four days of the week. Platinum is up 11% this month after gaining 6.6% in July and tumbling 19% in June. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The current DG spot price is up $44.30 an ounce to $1895.10.
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