Gold ticks up on weaker dollar, Warsh's Jackson Hole speech in focus

Spot silver XAG= gained 1.8% to $69.35, platinum XPT= rose 1% to $1,848.08 and palladium XPD= was up 1.3% at $1,344.72.

Gold prices edged higher on Thursday on a weaker dollar, while markets awaited Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole on Friday for clues on the central bank's inflation outlook and monetary policy path.

Spot gold XAU= was up 0.4% at $4,607.90 per ounce by 1:54 p.m. EDT (1754 GMT), after settling 1.4% lower on Wednesday in its biggest one-day decline in a week. U.S. gold futures GCv1 for December delivery settled 0.2% higher at $4,664.

The U.S. dollar eased, making dollar-denominated commodities more affordable for holders of other currencies. USD/

Markets now focus on remarks from Warsh at the annual Jackson Hole symposium in Wyoming on Friday, with investors hoping the Fed chair will use his debut speech to explain his roadmap for returning inflation to the Fed's target and what he sees as the bond market's role in that strategy.

Data on Wednesday showed the U.S. Personal Consumption Expenditures Price Index, which the Fed uses to set its target, increased 3.7% in the 12 months through July, unchanged from June. Economists polled by Reuters had forecast a PCE reading of 3.6%.

While expectations of a September U.S. rate hike have gone down to just 34%, there's still a 74% chance of a hike by December, according to the CME FedWatch Tool. FEDWATCH

Higher interest rates typically dampen gold's appeal, since the metal generates no yield of its own.