Gold Prices Slip Ahead of Key Inflation Data Release

Gold prices have been on a decline this month, down over 6% so far. The precious metal fell by 0.2% to $4,170.63 per ounce at 0150 GMT on Wednesday. This comes as investors await the release of US inflation data at 1230 GMT.

Tony Sage, CEO of Critical Metals, believes that the PCE data will have a significant impact on gold prices. A softer reading could support gold and send prices back up to $4,200-$4,300 range, while a hotter number could push yields higher, making gold less appealing.

The US Federal Reserve has raised interest rates by 25 basis points this month, with traders seeing a 47% chance of another rate hike in October and a 91% chance in December. This trend is likely to continue, reducing the appeal of gold as an investment option.