Gold Prices Dip Amid Anticipation of US Inflation Data and Fed Chairman's Speech
Gold prices dipped slightly on Wednesday after hitting a more than three-month high in the previous session, as investors awaited key US inflation data to gauge the Federal Reserve's interest rate path.
The spot price of gold eased by 0.3% to $4,642.74 per ounce at 0410 GMT, while US gold futures rose 0.1% to $4,700.70.
Attention is focused on the upcoming release of the US Personal Consumption Expenditures (PCE) price index for July at 1230 GMT, as well as Fed Chairman Kevin Warsh's speech on Friday at the Jackson Hole symposium.
Financial markets strategist Wael Makarem said that a softer-than-expected inflation reading combined with a dovish message from Warsh could be beneficial to gold prices, reducing the opportunity cost of holding non-yielding assets.
Meanwhile, traders are pricing in a 61.6% chance that the Fed will leave rates unchanged next month, according to the CME FedWatch Tool.