Gold on track for monthly decline as investors brace for US inflation data
GLD•Spot gold rose 0.4% to $4,195.56 an ounce but was down more than 5% for the month as investors awaited US personal consumption expenditures inflation data.
1. Gold awaits inflation data
Gold prices firmed on Wednesday but remained on track for a monthly decline as expectations of higher interest rates weighed on sentiment. The US personal consumption expenditures price index was due at 1230 GMT, with investors watching for clues on the Federal Reserve’s next policy move. Spot gold rose 0.4% to $4,195.56 an ounce, while US gold futures gained 1.1% to $4,227.50.
2. Rate outlook and other metals
Traders saw a 47% chance of a Federal Reserve rate increase in October and a 91% chance of a hike in December, according to the CME’s FedWatch Tool. New York Fed President John Williams said policymakers probably only need one more hike this year to bring inflation back toward the central bank’s 2% goal. Silver fell 0.3%, while platinum and palladium rose, though all three were poised for monthly declines.
