Gold Falls Amid Inflation Data and Rising Interest Rate Hike Bets

Gold prices fell by 1% to $4,611.79 per ounce on Wednesday after U.S. inflation data came in line with expectations.

The Personal Consumption Expenditures Price Index, used by the Federal Reserve to set its target, increased 3.7% in the 12 months through July, matching economists' forecasts of a 3.6% reading.

As a result, investors are now seeing a 40% chance of an interest rate hike next month, compared to 36% before the data.

Peter Grant, vice president and senior metals strategist at Zaner Metals, said that gold's price action up to today's data was 'just some profit taking' and that it is now consolidating within yesterday's range.