Gold prices ticked up on Friday, with investors looking out for Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole symposium later in the day to gauge the central bank's future monetary policy.
Spot gold was up 0.1 percent at US$4,607.47 per ounce by 0839 GMT. It touched a more than three-month high of US$4,696.18 on Tuesday, following the US Treasury's announcement of support measures for long-duration bonds.
US gold futures GCcv1 were little changed at US$4,661.20.
"I think price action has been pretty constructive recently, and we're not seeing a great deal of movement because we're waiting for Warsh's speech at Jackson Hole," said Kyle Rodda, senior financial market analyst at Capital.com.
Fed officials shared their concerns about the US 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 percent in the 12 months through July.
Traders see a 34 percent chance of a US rate hike in September and a 74.2 percent 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 US$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 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.
Spot silver rose 1.8 percent to US$70.48 per ounce, and palladium gained 2.4 percent to US$1,382.51, with both metals on track for a weekly gain. Platinum was up 1.3 percent at US$1,869.33, but was headed for a weekly loss.
Reuters
