Gold steadies above $4,600 on White House revaluation signal

Gold held at $4,599.57 an ounce Thursday, up 0.2%, after the White House signaled a potential revaluation of the metal's official price.

Despite slightly higher US inflation data, global debt concerns continue to support demand for the yellow metal, UBS analyst Giovanni Staunovo said.

The Personal Consumption Expenditures Price Index rose 3.7% in the 12 months through July, unchanged from June and above the 3.6% economists forecast. Bullion-backed exchange-traded funds tracked by Bloomberg added more than 28 tonnes last week, the most since January, after a summer when inflows rebounded from a two-month outflow streak.

Gold last traded above $4,600 in May. Fed Chair Kevin Warsh's debut speech at the Jackson Hole symposium Friday is the next catalyst, with traders watching for clues on the central bank's inflation path.

White House revaluation signal

The White House on Thursday signaled a potential revaluation of gold's official price, a move that could weaken the dollar and lift precious metals miners and global commodity markets. The signal follows the US Treasury's decision last week to ramp up buybacks of older long-dated bonds, which revived the "debasement trade" that powered bullion's record-breaking rally in 2025.

Gold is still up roughly 14% this month despite Wednesday's 1.4% decline, its biggest one-day drop in a week and the metal's best month since 1999. The rebound has pushed bullion above its 200-day moving average, a momentum signal traders watch closely, after COMEX gold hit a three-month high earlier this week. The dollar's slide against major peers has added to the metal's appeal as a store of value.

Warsh's Jackson Hole debut

Markets are looking 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 explain his roadmap for returning inflation to the Fed's target. If Warsh delivers a repeat of his vague press conference after the most recent FOMC meeting, that could reignite debasement fears and support gold, said Hamad Hussain, a climate and commodities economist at Capital Economics.

While expectations of a September rate hike have fallen to 36%, there is 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 because it does not yield interest, and a hawkish tone from Warsh could lift real yields and the dollar, pressuring bullion's outlook.

This article is for informational purposes only and does not constitute investment advice.