Gold steadies after hitting over 3-month peak, US inflation data looms
GLD•Fed speech and inflation data in focus
While gold is widely regarded as an inflation hedge, elevated rates can curb its appeal as it is a non-yielding asset.
Fed Chairman Warsh's debut speech at the annual Jackson Hole conference this week has taken on added weight as traders and analysts look for guidance about the recent jump in bond yields and for reassurance of his independence from the Trump administration.
The U.S. Personal Consumption Expenditures report, the Fed's preferred inflation gauge, is due on Wednesday.
Gold holds steady after three-month high
Gold held steady after hitting its highest in more than three months on Tuesday, as investor focus shifted to upcoming U.S. inflation data and a speech later this week by Federal Reserve Chair Kevin Warsh.
Spot gold XAU= steadied at $4,645.67 per ounce by 0651 GMT, after scaling its highest since May 14 earlier. U.S. gold futures GCcv1 rose 0.1% to $4,702.00.
"Looking ahead, we expect dips in gold to be well-supported from buyers looking for gold to make its way towards the next upside resistance at $4,900/$5,000," IG market analyst Tony Sycamore said.
Other metals soften as geopolitical tensions persist
On the geopolitical front, Iran promised to retaliate against expanded U.S. economic sanctions that Washington said would cut off Tehran's economic lifeline.
Among other metals, spot silver XAG= fell 0.7% to $68.43 per ounce, platinum XPT= lost 1.1% to $1,854.67 and palladium XPD= slipped 1.4% to $1,338.15.
