Gold inches lower ahead of Fed Chair Warsh's Jackson Hole remarks

Gold discounts in India, meanwhile, plunged this week, as demand fell sharply on market speculation that the government could consider rolling back a recent hike in import duties. GOL/AS

Spot silver XAG= rose 1.5% to $70.32 per ounce, platinum XPT= was up 2.6% at $1,894.85 and palladium XPD= gained 4.4% to $1,409.74 an ounce, with all metals on track for a weekly gain.

Fed officials shared their concerns about the U.S. inflation landscape on Thursday, as central bankers gathered in Jackson Hole. Kansas City Fed President Jeffrey Schmid and Cleveland Fed President Beth Hammack reiterated their belief that the central bank needs to raise interest rates to help curb inflation.

The policymakers spoke a day after data showed that the Personal Consumption Expenditures Price Index, the central bank's main inflation gauge, stood at 3.7% in the 12 months through July.

Traders see a 36% chance of a U.S. rate hike in September and a 74% chance by December, according to the CME FedWatch tool. Fed Chair Warsh is scheduled to speak at around 1400 GMT.

Gold tends to lose appeal in a high interest rate environment as it offers no yield.

"It's quite possible that we will see gold recapture the $5,000 mark, at least by the end of the year. But again, it all depends on the changing language of the Fed and what they do with policy," said Rodda.

Gold prices ticked lower on Friday, with investors awaiting Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole symposium later in the day to gauge the central bank's monetary policy direction.

Spot gold XAU= was down 0.1% at $4,594.61 per ounce by 1203 GMT. It touched a more than three-month high of $4,696.18 on Tuesday, following the U.S. Treasury's announcement of support measures for long-duration bonds.