Gold rally takes a breather ahead of US inflation data
GLD•Other precious metals
Among other metals, spot silver XAG= slipped 0.3% to $68.46 per ounce, platinum XPT= dropped 0.3% to $1,852.06, and palladium XPD= gained 0.7% to $1,335.09.
Gold eases ahead of US PCE inflation data
Gold prices eased on Wednesday, on track to snap a three-session winning streak, with focus shifting to U.S. inflation data due later today for signals on the Federal Reserve's outlook on interest rates.
Spot gold XAU= fell 0.9% to $4,616.62 per ounce by 0927 GMT, after prices climbed to their highest since May 14 on Tuesday following the U.S. Treasury Department's recent bond buyback announcement.
U.S. gold futures GCcv1 dropped 0.5% to $4,672.10.
“Gold prices are subdued today as the rally looks technically stretched and markets adopt a cautious stance ahead of key events that can shape its trajectory," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.
Fed outlook, geopolitics and China imports in focus
The U.S. Personal Consumption Expenditures (PCE) inflation report for July is due at 1230 GMT, along with Fed Chair Kevin Warsh's remarks at the Jackson Hole Symposium on Friday.
Soft producer and consumer inflation figures published this month lowered the probability of an interest rate hike in September. Traders are now pricing in about a 64% chance that the Fed will leave rates unchanged next month, according to the CME FedWatch Tool. FEDWATCH/
Gold often loses its appeal in a high-interest-rate environment due to its non-yielding characteristic.
"If Warsh remains tight-lipped about policy, then we may expect some renewed easing in the dollar and further interest in gold on the basis of uncertainty; if he is resolutely firm in his intentions, then gold may come under pressure," said Rhona O'Connell, head of market analysis at StoneX.
