Gold remains around $4,600 as precious metal moves to biggest monthly gain since 1999

Gold stabilised around $4,600 per ounce as investors assessed the future of US interest rates in anticipation of a significant address by Federal Reserve Chairman Kevin Warsh.

At the time of writing, COMEX Gold was trading at $4,650.60, lower than the previous closing of $4,656. The COMEX moved to $69.400 from the previous day's 69.350.

There was little movement after a 0.2% increase in the previous session, but is poised for its largest monthly increase since 1999. The metal received renewed momentum from the US Treasury's unexpected intervention in the bond market, which rekindled interest in the so-called debasement trade that fueled gold's record-setting surge last year.

Investors are looking for insights into the Fed's stance on inflation when Warsh delivers his first major speech as chairman later on Friday. This highly anticipated address at the central bank's annual Jackson Hole symposium provides Warsh with a chance to address criticisms regarding his lack of transparency about his economic views.

As Bloomberg report said that, economists and policymakers are split on the necessity of raising rates in the upcoming months, which could pose a challenge for non-yielding gold. Although Fed officials maintained borrowing costs in July, three members dissented, advocating for a quarter-point increase.

Gold's significant recovery – with the metal on track to rise nearly 14% in August – has been bolstered by a diverse array of investor engagement.

Although the likelihood of a US rate increase in September has decreased to merely 34%, the probability of a hike by December remains at 74%, as indicated by the CME FedWatch Tool.

Generally, elevated interest rates tend to reduce the attractiveness of gold, given that the metal does not produce any yield on its own.

Also read: Asian stocks mixed as markets await US Fed Chair Kevin Warsh's Jackson Hole address