Gold Retreats from Three-Month High Amid Higher Inflation

The price of gold retreated from its three-month high after the US reported a higher-than-expected inflation rate in July. The US Personal Consumption Expenditures (PCE) inflation rate came in at 3.7% year-over-year, while core PCE held steady at 3.3%. This led to a decline in Comex December gold futures by 1%, settling at $4,649.10 per ounce, and spot gold falling 1.4% to $4,592.53.

Despite the pullback, gold miners' equities continued to outperform the underlying metal prices, with Eldorado Gold rising 55%, Equinox gaining 53%, and Newmont increasing by 41% in August. This suggests that these companies have strong operating and financial leverage to current price levels.