Gold Prices Stabilize as Investors Await Fed's Next Move

Gold prices have cooled down after reaching a three-month high, and investors are now focused on the next move from the Federal Reserve. As of August 26, spot gold price decreased by 0.70% to $4,626.18 per ounce.

The recent strong increase in gold prices showed signs of slowing down, with Nikos Tzabouras, a senior market analyst at Tradu.com, noting that the upward momentum is technically prolonged and investors are shifting to a cautious state.

The immediate focus for gold's development in the coming sessions will depend significantly on US Personal Consumption Price Index (PCE) data, expected to be released on August 26. If inflation shows signs of cooling down and the Fed Chairman sends soft signals, gold may continue to receive support. Conversely, a tougher message from the Fed may boost the USD and bond yields, putting pressure on the precious metal.