US Federal Reserve

The odds of a hike in September are now 50-50, according to some analysts

The US central bank chair now faces more pressure to back up his words with interest rate hikes

Three of US Fed chair Warsh’s new colleagues dissented in favour of a rate hike

The Fed chief had said he had “no tolerance” for inflation that has been running above the central bank’s target 2%

Higher borrowing costs are typically a headwind for the non-yielding metal

If he chooses to stay put, he is likely to warn markets of a hike at next meeting in September

Gold has largely hovered around US$4,000 an ounce since late June, which some traders see as a key support level

Inflation could also remain elevated due to AI-related demand, effects of new US tariffs

Oil prices are just one of the potential inflation risks confronting policymakers