Gold prices stabilize after yesterday's decline as the market awaits remarks from Federal Reserve Chair Waller.

1. During Thursday’s early Asian trading session, spot gold fluctuated and rebounded, rising by up to 0.7% to USD 4,626.95 per ounce, and is currently trading near USD 4,618 per ounce. In the previous trading day, due to US inflation data coming in higher than expected, gold prices had dropped by more than 1% to below the USD 4,600 level, hitting a low near USD 4,583. The market is now closely watching Federal Reserve Chair Powell’s speech at the Jackson Hole symposium on Friday for further clues regarding the outlook for interest rates.2. US inflation in July unexpectedly remained stable, marking the 65th consecutive month far above the Federal Reserve’s 2% target. The recent pullback in inflation from its peak driven by the Iran war has stalled, which may intensify debates within the Federal Reserve over whether to raise rates or keep them unchanged. Gold does not pay interest, so its appeal typically diminishes in a high interest rate environment.3. The CME FedWatch tool shows that the market currently sees a 36.5% probability of the Federal Reserve raising rates in September, with the probability for a hike in December rising to 72.7%. Persistent expectations of higher interest rates continue to put pressure on gold prices, but geopolitical uncertainties are limiting further downside for gold.4. On the geopolitical front, Qatar’s Prime Minister will visit Tehran to seek a restoration of diplomatic relations. Previously, the US and Iran had accused each other over Washington’s commitment to intensifying economic pressure on Tehran by sanctioning its trading partners. Regional developments continue to provide some safe-haven support for gold.