Jackson Hole poses the next key test for gold, OCBC’s Christopher Wong says. All eyes are on Fed Chairman Kevin Warsh’s speech but with no Q&A typically attached, there’s limited scope for markets to press for a clearer September signal. Still, traders are likely to parse the speech for insights on the Fed’s broader policy framework and how Warsh defines it, possibly in terms of inflation persistence and forward guidance. “These may still have implications on USD, rates, sentiment and precious metals.”

OCBC remains constructive on gold as U.S. fiscal credibility concerns underpin demand, but an inability to sustain recent highs—plus a rebound in yields and the dollar after firmer inflation data—argue against chasing in the immediate term. Wong pegs resistance at $4,700-$4,769 a troy ounce with support $4,520; gold last at $4,575.

Gold declines in early Asian trade as traders await a speech from Fed Chair Warsh, hoping for clues on the trajectory of interest rates as inflation stays sticky. A balanced tone from Warsh at the Jackson Hole conference could support gold, says Kudo.com’s Konstantinos Chrysikos, while hawkish remarks could lift bond yields and pressure the precious metal. A higher rate environment typically weighs on nonyielding assets like gold.

Markets will also watch any shifts in geopolitical developments in the Middle East and their impact on oil prices and inflation expectations, he adds. Spot gold drops 0.3% to $4,588.23 a troy ounce.