Gold Prices Slide as Fed's Policy Path Under Scrutiny Amid Inflation Data

The spot prices of gold and silver moved lower in early U.S. trading on Wednesday after the July PCE inflation data came in slightly above expectations.

The report showed that July PCE rose 0.2% month-over-month and 3.7% year-over-year, above forecasts for a 0.1% monthly gain and a 3.6% annual rate. Core PCE increased 0.2% on the month and 3.3% year-over-year.

This data prompted traders to reassess the Federal Reserve's policy path, leading to softer stock futures and higher Treasury yields across the curve. Gold lost some of its fiscal-risk bid as market participants considered how much room the Fed has to keep rates on hold.