Gold steadies after hitting over 3-month peak ahead of US inflation data
GLD•Other precious metals close lower
Spot silver XAG= fell 0.1% to $68.86 per ounce, platinum XPT= dropped 1.2% to $1,854.47, and palladium XPD= was down 1.8% at $1,332.43.
Inflation data and Fed outlook remain in focus
Markets are now focused on Wednesday's U.S. Personal Consumption Expenditures (PCE) inflation report for July and Fed Chair Kevin Warsh's remarks at the Jackson Hole symposium on Friday for further clues on the central bank's monetary policy outlook.
While the Fed tracks the PCE data for its 2% inflation target, soft producer and consumer inflation figures this month diminished chances of imminent U.S. rate hikes.
Traders are currently pricing in only a 38% chance of a U.S. interest rate hike in September, according to the CME FedWatch Tool. FEDWATCH/
Gold loses its appeal in a high interest rate environment as it does not yield any interest.
