Gold Prices Slip as Interest Rate Expectations Weigh On Market

Gold prices remain steady on Wednesday, but are still poised for a monthly decline due to expectations of higher interest rates. The US personal consumption expenditures (PCE) price index is set to be released at 1230 GMT, and investors are looking to the data for clues on the Federal Reserve's policy path.

Federal Reserve Bank of New York President John Williams said that the central bank has time to weigh economic data before deciding when to hike interest rates again. He added that one more increase is likely before the year ends.

Traders see a 50% chance of a Fed rate increase in October and a 92% chance of a hike in December, according to CME's FedWatch Tool. In a high-interest rate environment, investors often favor yield-bearing assets over gold.