Gold Prices Dip Amid Slightly Hotter-Than-Expected PCE Inflation Data

Gold prices dipped in early U.S. trading on Wednesday after July's PCE inflation data came in slightly hotter than expected, pushing Treasury yields higher ahead of Fed Chair Kevin Warsh's Jackson Hole remarks.

The latest inflation data showed a 0.2% monthly gain and a 3.7% annual rate, above expectations for a 0.1% monthly gain and a 3.6% annual rate. This led to stock futures softening and Treasury yields edging higher across the curve, causing gold to lose part of its fiscal-risk bid.

Despite this, gold remains above the $4,567 support area and is still trading inside the broader breakout structure. However, the metal has slipped back below the $4,661 resistance level after failing to extend the prior move.