Gold Prices Retreat Ahead of Key US Inflation Report
Gold prices retreated on Wednesday after reaching their highest level in over three months the previous day. Spot gold fell 0.3% to $4,642.74 per ounce by 0410 GMT, according to Reuters.
The price drop came as investors awaited a crucial US inflation report, specifically the Personal Consumption Expenditures (PCE) price index for July, which is due at 1230 GMT. The Federal Reserve's preferred inflation gauge is expected to have a significant impact on market sentiment.
US gold futures, however, rose 0.1% to $4,700.70. This slight divergence between spot and futures prices may be attributed to various market factors.
International Monetary Fund Managing Director Kristalina Georgieva expressed concern about deteriorating financial conditions in some countries, despite the global economy weathering the energy shock from the Iran war better than expected.