Gold Steadies as Markets Await Fed Chair's Jackson Hole Address

Gold prices rebounded on Thursday, climbing 0.5% to $4,615.27 per ounce, after a more than 1% decline in the previous session. The market's focus has now shifted to a scheduled address by U.S. Federal Reserve Chair Kevin Warsh at the central bank's Jackson Hole symposium on Friday.

The recovery comes after Wednesday's sell-off, triggered by data showing U.S. inflation remained stubbornly elevated in July. Annual inflation held steady, marking the 65th consecutive month above the Fed's 2% target. This persistent price pressure has intensified the debate within the central bank over whether to raise interest rates or maintain the current stance.

Traders are currently pricing in a 36.5% probability of a rate hike in September, with the odds increasing to 72.7% for a move by December, according to the CME FedWatch Tool. Higher interest rates typically diminish the appeal of gold, which yields no interest.

In the geopolitical arena, diplomatic efforts are underway as Qatar's prime minister is set to visit Tehran. The trip aims to revive dialogue following recent tensions between the U.S. and Iran over Washington's plans to increase economic pressure through sanctions on trade partners.

Other precious metals also saw gains, with silver rising 1% to $68.77, platinum adding 0.7% to $1,842.88, and palladium firming 0.3% to $1,332.34.

In a separate development, South African mining companies are accelerating investments in renewable energy. The move marks a strategic shift away from decades of reliance on state utility Eskom, as firms seek to diversify power sources, reduce costs, and meet decarbonisation targets.