Traders await US inflation figures and Fed commentary for clues on interest rate policy, supporting gold prices near record highs.
Gold (XAU/USD) trades above $4,650 in Asian markets, extending its recent range-bound movement as investors focus on upcoming US Personal Consumption Expenditures (PCE) data. The commodity remains close to its highest level since May 14, with traders seeking direction from inflation metrics and Federal Reserve signals.
Market expectations have shifted toward a potential pause in rate hikes at the September 15–16 FOMC meeting, driven by cooling inflation and a weakening labor market. Lower US bond yields, influenced by the Treasury’s buyback strategy and its $1 trillion General Account, further support gold’s appeal. Meanwhile, easing Middle East tensions have pressured crude oil prices, reducing inflation concerns.
Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium will be closely watched for additional guidance on monetary policy. The US Dollar’s trajectory and gold’s non-yielding status remain key factors in price movements.