Investors Await Warsh’s Speech at Jackson Hole as Gold Prices Remain Steady

Gold stabilized around $4,600 per ounce as investors evaluated the trajectory of US interest rates ahead of a significant address by Federal Reserve Chairman Kevin Warsh.

The precious metal was on track for its largest monthly increase this century, having surged nearly 14% in August. This latest upswing was propelled by the unexpected intervention of the US Treasury in the bond market, rekindling interest in the debasement trade that fueled gold’s record-breaking ascent last year. Gold maintained these gains on Friday, recovering from an earlier dip during the London trading session.

Investors are looking for insights into the Fed’s stance on inflation as Warsh delivers his inaugural major speech as chairman later on Friday. High interest rates pose challenges for gold, which does not yield returns.

The much-anticipated address at the central bank’s annual Jackson Hole symposium presents Warsh with a chance to respond to critiques regarding his transparency concerning the economy.

This event is “one of the rare opportunities Warsh has to directly influence the narrative and stabilize market sentiment,” stated Justin Lin, an analyst at Global X ETFs, noting that investors are likely to proceed cautiously before the speech.

There is a divide among economists and policymakers regarding the necessity of interest rate hikes in the upcoming months. Although Fed officials opted to maintain borrowing costs in July, three members expressed dissent in favor of a quarter-point increase.

At Jackson Hole on Thursday, two central bank officials indicated that Fed policy was not constraining the US economy, especially as inflation remains above the 2% target, urging their colleagues to take action soon to alleviate price pressures. However, Fed Bank of Boston President Susan Collins pointed out that there is evidence suggesting rates are “mildly restrictive.”

Gold’s significant rebound is buoyed by a broad spectrum of investor participation, allowing the metal to hold above the 200-day moving average, a key technical support indicator. Bullion-backed exchange-traded funds monitored by Bloomberg added over 28 tons last week, the highest since January, with an additional 20 tons accumulated so far this week. Central banks have also increased their purchases.

Treasury efforts to manage long-term borrowing costs could lead investors away from steepeners and back into gold, according to Citigroup Inc strategist Dirk Willer during a podcast this week.

Steepeners—investments betting that the gap between short- and long-term Treasury yields will widen—had remained one of the few active strategies within the debasement trade following investors reducing their bets on higher gold prices and a weaker dollar, Willer highlighted.

“With movements in the back end, steepeners may not be the optimal strategy to express those concerns,” Willer remarked. “Thus, we expect investors to decrease their steepeners and instead purchase gold and short the dollar again.”

Spot gold increased 0.1% to $4,606.04 an ounce at 10:55 a.m. in London. Silver climbed 1.8% to $70.50 an ounce. Platinum and palladium also experienced gains. The Bloomberg Dollar Spot Index, a measure of the US dollar, remained steady.

© 2026 Bloomberg