Gold Prices Steady as Investors Await Crucial US Inflation Data

Gold prices remained steady on August 26 as investors await key US inflation data that could influence the Federal Reserve's future interest rate decisions.

The metal climbed to its highest level since mid-May the previous day, but investors are focused on the upcoming release of the July personal consumption expenditures price index at 12:30 GMT.

According to Wael Makarem, Head of Financial Markets Strategy at Exness, a weaker-than-expected inflation data combined with a dovish or measured stance from Federal Reserve Chair Kevin Warsh would be the most favorable scenario for gold.

This could reinforce expectations of lower real yields and reduce the opportunity cost of holding a non-yielding asset. The Treasury's recent bond buyback plans also matter for gold, particularly given their impact on fiscal sustainability.