Gold Prices Tumble as July PCE Inflation Data Exceeds Expectations

Gold prices slid Wednesday after the release of July's Personal Consumption Expenditures (PCE) inflation data, which came in hotter than expected. The PCE index rose 0.2% on the month and 3.7% from a year earlier, above forecasts for a 0.1% monthly gain and a 3.6% annual rate.

The stronger-than-expected inflation data pushed Treasury yields higher across the curve, softening stock futures and eroding gold's fiscal-risk bid. As a result, spot gold prices dropped 0.52% to trade near $4,633.50 an ounce, while silver prices rose 0.26% to around $68.72.

The Strait of Hormuz remains a key geopolitical factor influencing oil and inflation expectations, with Iran negotiating a maritime arrangement with Oman that would route commercial shipping through Iranian and Omani waters while barring military vessels from the strait.