Gold rises above $4,600 ahead of Jackson Hole; silver jumps

Gold has stabilised around $4,600 per ounce as investors assess the Federal Reserve's strategy regarding persistent inflation in anticipation of the annual Jackson Hole meeting this week.

At the time of writing, COMEX gold stood at $4,673.70, 0.44% higher than yesterday's closing of $4,650. Meanwhile, COMEX silver rose over 1.40%, jumping to 68.97, up from the previous close of $68.09.

The price increased slightly after a 1.4% decline in the previous session, which ended a five-day winning streak.

A Bloomberg report hinted that the drop on Wednesday was influenced by data indicating that US inflation remains significantly above the Fed's target, increasing the probability of an interest rate hike by the central bank — a challenge for non-yielding bullion. The dollar experienced its largest rise in two weeks, and bond yields also increased following the inflation report.

Nevertheless, gold has risen approximately 14% this month, bolstered by the unexpected intervention of the US Treasury in the bond market last week. Efforts to manage the US debt burden have rekindled interest in the so-called debasement trade, which previously fuelled bullion's record rally last year, as investors sought the metal as a safeguard against soaring budget deficits and a depreciating dollar.

According to analysts, this week, investors will be looking for insights into the Fed's stance on inflation when Kevin Warsh delivers his first significant speech as the central bank's chairman. The highly anticipated address on Friday at the Jackson Hole symposium provides Warsh with a chance to address criticisms regarding his transparency on economic matters.

Another Bloomberg report pointed at concerns regarding the independence of the central bank — another factor that contributed to gold's earlier rally — have also emerged again, with Fed Governor Lisa Cook reiterating her denial of unfounded mortgage fraud allegations made by President Donald Trump, who is contemplating whether to renew his efforts to oust her.

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