Gold Prices Slip Amid Rate Hike Bets as Central Banks Maintain Buying Spree

Gold prices retreated to $4,371.92/oz, down 0.4% from its highest level since June 5 at $4,434.84.

The decline comes as September Fed hike odds rose to 52% from 44%, and higher oil prices pushed the 10-year Treasury yield higher, increasing gold's opportunity cost.

Despite this, central banks bought a net 289 tonnes of gold in Q2, up 62% year-over-year, even as gold posted its steepest quarterly decline in a decade.

The World Gold Council and Dynacor signed an MOU to formalize ASGM and facilitate new processing capacity in Africa and Latin America, providing physical-market evidence that demand remains strong despite the selloff driven by rate expectations.

CPI and PPI will determine whether rate-hike expectations remain elevated or retreat, shaping the next move in gold.