Gold 
“Gold edged down, after falling more than 3% on Friday, as Federal Reserve Chairman Kevin Warsh’s pledge to fight inflation lifted bets the US central bank will raise interest rates before the end of the year.
Bullion slid as much as 1.3% to trade below $4,400 an ounce before paring the loss, after tumbling the most since early June in the previous session. Warsh reiterated at the Fed’s annual conference in Jackson Hole, Wyoming that policymakers will return inflation to their 2% goal, which he said was a firm and fixed target. Traders are now pricing in a more than 50% chance of a hike at the Fed’s next meeting in September.
“The move toward a more hawkish stance was surprising to many investors,” so some short-term headwinds on gold should continue, said Rajeev De Mello, global macro portfolio manager at GAMA Asset Management SA. He said he expects prices to sit around $4,200 to $4,300 an ounce in the near term and would hold on to his gold investments as he was a longer-term investor.
A jump in oil prices added inflationary pressure, after the US military struck Iranian rocket launchers it said were preparing to send mines into the waterway on Sunday. It was the first American military action against Iran in more than a month, after President Donald Trump had switched to a campaign of squeezing the Islamic Republic economically.
Bullion is up around 10% in August, heading for the biggest monthly gain since January, with prices surging after the US Treasury’s surprise announcement mid-month to ramp up bond buybacks. The intervention to rein in borrowing costs revived the so-called debasement trade, driven by concerns over rising sovereign debt and currency devaluation, a theme that helped fuel gold’s 65% rally in 2025.
The dovish Treasury and hawkish Federal Reserve are in a “tug of war,” Nicky Shiels, head of research and metals strategy at MKS PAMP SA, said in a note. The debasement trade is likely to continue into September as the Treasury starts bond buybacks and ahead of the Fed meeting, which will support gold, she added.
Spot gold was 0.4% lower at $4,436 an ounce at 10 a.m. in London. Silver was up 0.9% at $66.96 an ounce. Platinum and palladium both fell. The Bloomberg Dollar Spot Index, a gauge of the US currency, was up 0.2% after rising 0.4% the previous session.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
