Gold Prices Headed for Monthly Decline Amid US Inflation Data Uncertainty
Gold prices have steadied on Wednesday but are headed for a monthly loss as investors await US inflation data. The precious metal is currently trading at $4,180.30 per ounce, having lost 6% so far this month.
The dollar's strong performance has made greenback-denominated metals more expensive for holders of other currencies. Investors are closely watching the US personal consumption expenditures price index due out at 1230 GMT for clues on the Federal Reserve's next policy move.
According to Tony Sage, CEO of Critical Metals, 'A softer reading would likely support gold and open the way for a return to the $4,200-4,300 range, while a hotter number could push yields and the dollar higher, putting renewed pressure on gold and testing the $4,100 level.'
The US central bank raised interest rates by 25 basis points this month, with traders seeing a 47% chance of another rate hike in October and a 92% chance in December.