The gold price consolidated above $4,600 an ounce, rising as much as 0.7% and recovering part of Wednesday’s pullback. Investors are weighing the Federal Reserve’s inflation stance ahead of the Jackson Hole symposium this week.
Bullion snapped a five-day winning streak on Wednesday. However, a report showing inflation above the Fed’s target raised rate-hike odds, lifting the dollar and bond yields.
Debasement Trade Drives August Gold Price Rally
Gold is still up roughly 14% this month despite the one-day setback. The US Treasury made an unexpected bond market intervention last week.
That move revived interest in the “debasement trade.” Investors buy hard assets to hedge against expanding deficits and a weaker dollar.
The same trade powered bullion’s record-breaking rally in 2025. It is now driving gold’s best month since 1999.
Gold’s rebound has also pushed it above its 200-day moving average, a signal of shifting momentum that traders watch closely.
Meanwhile, bullion-backed exchange-traded funds tracked by Bloomberg added more than 28 tonnes last week, the most since January. That followed a summer when ETF inflows rebounded from a two-month outflow streak.
Warsh’s Jackson Hole Debut Looms
The Jackson Hole symposium is the Kansas City Fed’s annual gathering of central bankers. Historically, it has been a venue for major policy pivots, including the Fed’s hawkish shift in 2022.
Traders are looking for clues to the Fed’s inflation approach when Chairman Kevin Warsh delivers his first major speech as Fed chairman on Friday. The address gives Warsh a chance to counter criticism that he has been guarded about his economic views.
A hawkish tone from Warsh could lift real yields and the dollar, pressuring gold’s price outlook. In contrast, a dovish signal could extend the rally toward fresh multi-month highs.
Bitrue