Gold prices moved lower on Friday as investors waited for comments from Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium. Traders are looking for clues about where US interest rates could go next.
Spot gold fell 0.5% to $4,576.30 per ounce. Earlier this week, the metal climbed to its highest level in more than three months after the US Treasury announced measures aimed at supporting long-term bonds.
US gold futures also declined, falling 0.8% to $4,629 per ounce.
Matt Simpson, a senior analyst at StoneX, said that recent economic data appears strong enough to support a tougher stance on monetary policy, rather than giving the Federal Reserve a reason to become more flexible.
Markets remain uncertain about future rate decisions. Traders currently see a 33.9% chance of a rate increase in September, with those odds rising to around 74% by December.
Gold often performs well when interest rates are low because it does not pay interest. When borrowing costs and returns on other investments increase, gold can become less attractive to investors.
Other precious metals also ended the day lower. Silver dropped 1% to $68.54 per ounce, palladium slipped 0.8% to $1,339.84, and platinum fell 0.6% to $1,834.83 per ounce. All three metals are also heading toward weekly losses.
