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

Gold prices edged lower in early Asian trading on Friday, as investors held back ahead of a highly anticipated speech by U.S. Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Spot gold slipped 0.2% to $4,589.85 per ounce, while U.S. gold futures fell 0.5% to $4,642.60.

Central bankers gathered in Jackson Hole, Wyoming, for the Kansas City Fed's annual economic symposium, where officials on Thursday voiced ongoing concerns about inflation. Their remarks came after data showed the Personal Consumption Expenditures Price Index—the Fed's preferred inflation gauge—stood at 3.7% in the 12 months through July.

Meanwhile, fresh labor market figures showed first-time unemployment claims fell for a second straight week, and the total number of people receiving jobless benefits dropped to a one-month low. The stable labor market could give the Fed room to focus on curbing price pressures.

According to the CME FedWatch Tool, traders currently see a 35.4% chance of a rate hike in September and a 74.6% chance by December. Higher interest rates typically reduce the appeal of non-yielding assets like gold, even though it is often viewed as an inflation hedge.

In other metals, silver slipped 0.2% to $69.12 per ounce, palladium eased 0.1% to $1,349.34, and platinum declined 0.2% to $1,842.26, heading for a weekly loss.

Investors now await Warsh's speech later in the day, along with U.S. consumer sentiment data, for further clues on the Fed's policy path.