Gold Prices Tumble as Markets Await US Inflation Data

Gold prices declined on Wednesday after reaching their highest level in over three months due to anticipation of US inflation data, which will provide insight into the Federal Reserve's interest-rate path.

The spot gold price fell by 0.3% to $4,642.74 per ounce at 04:10 GMT, while U.S. gold futures rose 0.1% to $4,700.70 per ounce.

Investors are waiting for the release of the US Personal Consumption Expenditures (PCE) Price Index for July at 12:30 GMT, which is the Federal Reserve's preferred measure of inflation.

Wail Makarem, Head of Financial Markets Strategy at Exness, believes that gold will benefit from lower-than-expected inflation data combined with a dovish or balanced message from Federal Reserve Chair Kevin Warsh.