Key HighlightsGold maintained stability near $4,600 per ounce Friday morning as traders anticipated Fed Chair Kevin Warsh’s Jackson Hole addressThe precious metal touched a three-month peak close to $4,700 earlier this week on U.S. fiscal concernsAugust marks gold’s strongest monthly performance since 1999, climbing almost 14%Rate hike probability stands at 34% for September and 74% for December according to market pricingOther precious metals including silver and platinum also posted gains FridayThe gold market remained in a holding pattern Friday as traders prepared for Federal Reserve Chair Kevin Warsh’s highly anticipated remarks at the Jackson Hole economic symposium.Spot gold hovered around the $4,600 per ounce level, while U.S. Gold Futures dipped 0.3% to settle at $4,651.41. Earlier in the week, the yellow metal had climbed to approximately $4,700, marking a three-month peak.Gold Dec 26 (GC=F)While Friday saw modest retreat, gold remains poised for a slight weekly decline following three consecutive weeks of positive momentum.August Delivers Exceptional Returns for Precious MetalThis month has proven remarkably bullish for the precious metal. Gold has surged approximately 14% throughout August, positioning it for the strongest monthly advance in over two decades—since 1999.The impressive rally received significant support from an unexpected U.S. Treasury initiative to bolster longer-duration bonds. This policy shift reignited the debasement trade narrative that had previously propelled gold to unprecedented highs during the previous year.Exchange-traded funds backed by physical bullion monitored by Bloomberg absorbed over 28 tons during the prior week—the largest weekly inflow since January. An additional 20 tons flowed into these vehicles in subsequent trading sessions. Meanwhile, central bank gold acquisition programs have also intensified.Additional tailwinds for gold came from a weakening U.S. dollar and declining Treasury yields, both factors that diminish the opportunity cost associated with holding the non-interest-bearing asset.Interest Rate Uncertainty Clouds Future DirectionWhile the Federal Reserve maintained its policy stance unchanged during July’s meeting, three voting members favored implementing a quarter-point increase. This divided decision has sustained market uncertainty.The personal consumption expenditures index—the Fed’s favored inflation gauge—registered a 3.7% year-over-year increase through July. This elevated reading has reinforced speculation that monetary tightening could resume before year-end.Based on the CME FedWatch tool, market participants are assigning a 34% probability to a September rate increase and a 74% likelihood by the December meeting.Rising interest rates typically create headwinds for gold since the metal generates no yield, diminishing its appeal relative to interest-bearing alternatives.During Thursday’s Jackson Hole proceedings, two central bank representatives indicated that current policy settings were insufficiently restrictive to moderate economic activity. However, Fed Bank of Boston President Susan Collins characterized the prevailing rate environment as “mildly restrictive.”Market attention has now shifted entirely to Warsh’s address, scheduled for 10 a.m. Eastern Time Friday. As his inaugural major speech since assuming the Fed chair position, investors are analyzing it for monetary policy direction signals.Industrial and Precious Metals RallySilver advanced 1.3% to reach $70.11 per ounce. Platinum posted gains of 1.8% to trade at $1,882.60 per ounce. Copper futures on the London Metal Exchange increased 0.4% to $14,338.15 per ton.Gold continues trading in the vicinity of $4,600 as market participants await clarity from Warsh regarding the central bank’s approach to managing inflation pressures and interest rate policy through the remainder of the year.The post Gold Stays Steady at $4,600 Ahead of Fed’s Warsh Address at Jackson Hole appeared first on Blockonomi.