Gold retreats from peak but $4,600 support intact

August 27, 2026 (MLN): Gold prices edged higher on Thursday as concerns over currency debasement continued to support the metal, with market focus turning to closely watched comments expected from Federal Reserve Chair Kevin Warsh later this week.

The rally  builds on last week's gains, when gold climbed more than 5% after the U.S. Treasury moved to expand purchases of older long-dated bonds, a step that stoked fears of dollar debasement among investors.

However, currently, spot gold is down 1.26% to $4,603.13 an ounce as of [10:53 am] PST, according to data reported by Mettis Global.

Kevin Warsh is scheduled to speak at the annual Jackson Hole symposium in Wyoming, and his remarks are being viewed as a key signal for the Fed's next policy direction, CNBC reported.

According to the CME FedWatch Tool, traders currently assign a 36.5% probability to a rate hike in September, with that likelihood rising to 72.7% by December.

The shift in rate expectations follows data released Wednesday showing that annual U.S. inflation held steady in July rather than easing further, remaining well above the Fed's 2% target for a 65th consecutive month.

The halt in inflation's decline from a recent peak  triggered by the Iran conflict is expected to deepen the central bank's internal debate over whether to raise or hold interest rates.

Gold is traditionally viewed as a hedge against geopolitical and economic uncertainty, though its appeal tends to fade when interest rates rise, since the metal generates no yield.

On the geopolitical side, Qatar's prime minister is set to travel to Tehran in an effort to revive diplomatic channels, following an exchange of accusations between Washington and Tehran after the U.S. signaled plans to tighten economic pressure on Iran by sanctioning its trading partners.

Among other precious metals, spot silver gained 1.7% to $69.28, platinum rose 1.1% to $1,848.57 and palladium firmed 0.5% to $1,334.49.

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