Gold Prices Slip Amid US Inflation Jitters

Gold prices rose above $4,190 on Wednesday but are still set for a steep monthly decline ahead of key US inflation data. The modest gain was not enough to erase a difficult month for gold.

The precious metal has been heavily impacted by rising interest rates and a strong competing force from government bonds and other interest-bearing assets.

The focus is now on the personal consumption expenditures price index, which is closely watched by Federal Reserve officials. A higher-than-expected PCE report could strengthen expectations for another rate increase, while softer inflation could provide some relief to gold by reducing pressure on the Fed to tighten policy quickly.