Gold prices are holding steady above $4,650, remaining close to their highest level since May 14. This stability comes as traders anticipate the release of the US Personal Consumption Expenditures (PCE) Price Index and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium, both of which will offer clues about the Fed's future interest rate path.
Expectations for a policy hold at the September 15–16 FOMC meeting have strengthened due to cooling price pressures and a sluggish labor market. The US Treasury's buyback strategy is also contributing to a decline in US bond yields. Positive developments regarding the Middle East crisis, specifically renewed talks between Iran and Oman to manage shipping through the Strait of Hormuz, have led to lower crude oil prices, easing inflation fears and further pressuring US bond yields. These factors are weakening the US Dollar and supporting gold prices.
While spot gold fell 1.4% to $4,592.97 per ounce after inflation data mostly met expectations, and US gold futures dropped 0.9% to settle at $4,653.30, some analysts remain optimistic. Peter Grant, vice president and senior metals strategist at Zaner Metals, noted that gold's price action was largely profit-taking and that the uptrend in gold is beginning to reassert itself. Grant sees potential for gold to surpass $5,000 this year and reach new all-time highs by the second quarter of 2027.
