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Gold steadies after sliding below $4,400 as hawkish Fed bets persist
CME FedWatch pricing shows about a 61% chance of a September rate hike after Kevin Warsh’s Jackson Hole remarks, keeping yields elevated and limiting gold upside.
Gold prices were steady in Monday trading after briefly slipping below $4,400, a level not seen since Aug. 19, as hawkish expectations around the Federal Reserve dampened demand for the non-yielding metal. FXStreet said XAU/USD was around $4,436 after last week’s peak near $4,697. The latest pullback followed comments attributed to Fed Chair Kevin Warsh at the Jackson Hole Symposium, which markets interpreted as opening the door to additional rate increases as soon as September. FXStreet reported that the tone revived expectations for higher rates, pushing the US dollar higher and lifting short-term Treasury yields. According to the CME FedWatch tool cited by FXStreet, markets are now pricing roughly a 61% probability of a September rate hike, up from about 38% before Warsh’s speech. FXStreet also pointed to the benchmark 10-year Treasury yield around 4.75%, near its highest level since January 2025, as an additional headwind for gold due to its lack of yield.
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