Gold Prices Drop Amid US Inflation Data and Hike Bets

Gold prices fell by 1% to $4,611.79 per ounce after US inflation data was released on Wednesday, coming in line with expectations.

The data showed that the Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, matching economists' forecast of a 3.6% reading.

This led to an increase in bets on a Federal Reserve interest-rate hike next month, with traders now seeing a 40% chance of a hike 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 this point was just some profit taking and they are consolidating within yesterday's range.