Gold edges higher as investors await Fed's Warsh speech for policy outlook

Gold prices ticked up on Thursday, drawing support from persistent dollar debasement concerns as markets weighed the prospect of fresh policy signals from Federal Reserve Chair Kevin Warsh at the annual Jackson Hole symposium on Friday. Spot gold was up 0.2% at $4,599.57 per ounce by 0852 GMT, after settling 1.4% lower on Wednesday in its biggest one-day decline in a week. U.S. gold futures were steady at $4,652.70. "Despite slightly higher U.S. inflation data yesterday, global debt concerns continue to support demand for the yellow metal," said UBS analyst Giovanni Staunovo. Gold prices hit an over three-month high earlier this week, with the recent rally driven by renewed dollar-debasement concerns following the U.S. Treasury's move last week to ramp up buybacks of older long-dated bonds. Markets are looking out for remarks from Warsh at the annual Jackson Hole symposium in Wyoming on Friday, with investors hoping the Fed chair will use his debut speech to fully explain his roadmap for returning inflation to the Fed's target and what he sees as the bond market's role in that strategy. "If Warsh delivers a repeat performance of his press conference following the most recent FOMC meeting - where his remarks were vague and arguably counterproductive - that could reignite fears surrounding debasement and support gold prices," said Hamad Hussain, a climate and commodities economist at Capital Economics. Data on Wednesday showed the Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, unchanged from June. Economists polled by Reuters had forecast a PCE reading, which the Fed uses to set its target, of 3.6%. While expectations of a September U.S. rate hike have gone down to just 36%, there's still a 72% chance of a hike by December, according to the CME FedWatch Tool. Gold loses its appeal in a high interest rate environment as it does not yield interest. Spot silver gained 0.6% to $68.48, platinum fell 0.2% to $1,825.57 and palladium lost 0.8% to $1,318.01.