Gold price (XAU/USD) is down 0.75% to near $4,620 during the European trading session on Wednesday.
The precious metal corrects as the rally pauses after posting a fresh three-month high at $4,697 the previous day, with investors turning cautious ahead of the United States (US) Personal Consumption Expenditure Price Index (PCE) data for July at 12:30 GMT and Federal Reserve (Fed) Chairman Kevin Warsh’s commentary at the Jackson Hole Symposium
The US core PCE inflation, which is closely tracked by Federal Reserve (Fed) officials, is expected to have remained steady at 3.3% Year-on-Year (YoY), with monthly figures rising at a 0.2% pace, faster than the June reading of 0.1%. Investors will pay close attention to the US PCE Inflation data to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook. Signs of US inflationary pressures remaining steady might ease Fed’s interest rate hike expectations further, which receded significantly this month, following the release of the weak Nonfarm Payrolls (NFP) data for July.
Warsh’s Jackson Hole speech seen as key Fed credibility test amid long-bond jitters Strategists at DBS flag Fed Chairman Kevin Warsh’s upcoming Jackson Hole keynote on Friday, August 28, as “the most important event this week,” but stress that the gathering is “viewed more as a credibility event rather than a rate-signalling one.” They note that “the past two days’ decline in the 30Y yield offers only a reprieve, not a resolution,” even as US Treasury Secretary Scott Bessent’s decision to expand long-bond buybacks “seeks to calm markets.” Against this backdrop, DBS argues that “Warsh faces a difficult balancing act: defending the Fed’s independence and price-stability mandate while providing greater clarity on the Fed’s reaction function without abandoning his preference for less forward guidance.” Gold Technical Analysis In the daily chart, XAU/USD trades at $4,621.08, maintaining a bullish near-term bias as spot holds well above the…