Gold extended its decline in Asian trading on August 31 as expectations for higher U.S. interest rates weakened demand for the non-yielding metal. Spot gold fell 0.7% to $44,423.84 per ounce at 11:04 a.m. Japan time, its lowest level since August 19, while December U.S. gold futures dropped 1.3% to $4,472.90. The benchmark August 2027 contract on the Osaka Exchange opened at ¥23,650 per gram, down ¥625 from the previous weekend's settlement. The selling followed Fed Chair Warsh's speech at the U.S. economic symposium in Jackson Hole, Wyoming, where he emphasized curbing inflation and left open the possibility of raising rates if necessary. CME FedWatch put the probability of a September rate hike at 57%, up from 36% before the speech. Tim Waterer, chief market analyst at KCM Trade, said markets were still pricing in the shift and that it remained uncertain whether Warsh's stance would result in a September increase. U.S. nonfarm payrolls and other employment data due this week are expected to help determine whether gold's decline deepens or prompts short covering, when traders buy back previously sold positions. Silver, platinum and palladium also fell, while the direction of gold is likely to remain tied to incoming economic indicators and monetary-policy expectations.