Dollar firms, gold slips as markets brace for Warsh at Jackson Hole
What's new: Traders priced a 74% chance of a Fed rate hike by December after July PCE inflation held at 3.7%.
The dollar regained ground and gold fell Friday as investors awaited remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium in Wyoming. The dollar index rose about 0.3% for the week, nearing a one-week high, while spot gold dropped 0.5% to $4,580.19 an ounce after reaching a three-month high earlier in the week. The moves followed data showing July inflation ran hotter than expected, with the Personal Consumption Expenditures Price Index at 3.7% from a year earlier, and second-quarter US growth at 1.5%. Markets were pricing in no change in September but a roughly 74% chance of at least a quarter-point hike by December, with elevated oil prices and persistent inflation keeping pressure on the Fed.