Gold Prices Retreat Amid Cautious Sentiment Ahead of Key Economic Releases

Gold prices retreated from their three-month peak on Tuesday after experiencing a modest decline of 0.4% to $4,634.20 per ounce.

The pullback followed last week's rally, which was fueled by the U.S. Treasury Department's announcement to significantly increase buybacks of long-term government securities.

This move reignited concerns about fiscal sustainability and the dollar's future purchasing capacity, bolstering international demand for gold as a safe-haven asset.

Market strategists are now eyeing two key events: Wednesday's core PCE inflation release and Fed Chair Kevin Warsh's Jackson Hole address on Friday.

To preserve its upward trajectory, gold must sustain levels above $4,700 per ounce, according to market analysts at Sucden Financial.