Gold Prices Slide as Traders Await PPI Data for Rate Hike Clues

Gold prices retreated on Thursday as traders paused after a recent rally fueled by cooling U.S. inflation, with attention turning to an upcoming producer price report for clues about near-term Federal Reserve rate hikes.

The spot gold price fell 0.5% to $4,383.53 per ounce by 0601 GMT, after jumping about 1% to its highest since June 5.

Analysts believe that traders are in consolidation mode today, waiting for confirmation from the upcoming PPI data before committing to the next leg higher.

The consumer price index rose 3.4% in the 12 months through July, down from 3.5% in June, which has led traders to scale back their bets on U.S. interest rate hikes.