Gold jumps 14%, heads for best month since 1999
What's the story
Gold prices have stabilized around $4,600 per ounce as investors await US interest rate decisions. At the time of writing, COMEX Gold was trading at $4,650.6, slightly lower than its previous close of $4,656. Despite a minor dip after a 0.2% rise in the last session, gold is on track for its biggest monthly gain since 1999 due to renewed momentum from US Treasury's unexpected bond market intervention.
Anticipation builds
Investors keenly await Warsh's speech for inflation insights
Investors are eagerly awaiting insights into the Federal Reserve's stance on inflation, as Chairman Kevin Warsh is set to deliver his first major speech later today.
The address at the central bank's annual Jackson Hole symposium will give Warsh an opportunity to clarify his economic views and address any concerns over his perceived lack of transparency.
Market dynamics
Gold's impressive recovery and rate hike odds
Gold's impressive recovery, with a nearly 14% rise in August, has been driven by a wide range of investor activity.
The chances of a US rate hike in September have dropped to just 34%, but the odds for December remain at 74%, according to the CME FedWatch Tool.
Higher interest rates usually make gold less appealing as it doesn't yield any returns on its own.