Gold Price Falls Below $4,600/Ounce Amid Higher US Inflation
The world gold price has fallen to around $4,593.4 USD/ounce as of August 27th, down $32.2 from the previous day.
This decline is largely attributed to higher-than-expected inflation data in the US, which showed a 0.2% increase in July's Personal Consumption Expenditures (PCE) report compared to the previous month and a 3.7% rise compared to the same period last year.
As a result, US government bond yields rebounded, putting pressure on gold prices.
The market is currently shifting towards a cautious state as investors wait for more signals about the monetary policy direction of the US Federal Reserve (Fed), particularly following Fed Chairman Kevin Warsh's speech at the Jackson Hole conference later in the week.
Despite this downward momentum, gold still receives support from concerns over financial risks and safe-haven demand in light of geopolitical instability.