Gold Prices Slide Ahead of Key US Inflation Data and Fed Remarks

Gold prices have retreated in international markets following their highest level in over three months. The decline comes as investors wait for key US inflation data to gauge the Federal Reserve's next interest-rate move.

The spot gold price fell 0.3% to $4,642.74 per ounce on Wednesday at 10:10 a.m. Bangladesh time, after reaching its highest level since mid-May on Tuesday. Meanwhile, US gold futures rose 0.1% to $4,700.70 per ounce.

Investors are closely watching the US Personal Consumption Expenditures (PCE) price index for July, which is due out at 12:30 p.m. GMT on Wednesday. The Federal Reserve considers this index a key measure of inflation, and markets will also be monitoring Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole symposium on Friday.

Analysts suggest that if inflation comes in below expectations, gold could receive further support. A dovish or balanced tone from Warsh on interest-rate cuts would likely add to this sentiment.