Gold Retreats Amid Wait for Key Economic Data and Fed Speech
Gold prices retreated on Tuesday, slipping from a three-month high as investors waited for key economic data and a speech by Federal Reserve Chair Kevin Warsh. The yellow metal had gained ground last week due to the US Treasury's plans to double its buybacks of longer-dated government debt, which revived concerns over fiscal policy and dollar purchasing power.
The announcement led to declining bond yields, making gold less expensive relative to other assets. Additionally, a weaker dollar made bullion cheaper for foreign buyers, further supporting gold prices.
However, investors remain cautious ahead of the release on Wednesday of the Bureau of Economic Analysis' core personal consumption expenditures price index, one of the Fed's preferred inflation metrics. Warsh is also scheduled to speak at the Fed's annual Jackson Hole event on Friday.