Gold Retreats from Three-Month High on US Inflation Data

The gold price retreated from its three-month high to around $4,610 in early Asian trading on Thursday. This comes after US inflation data for July was released by the Bureau of Economic Analysis (BEA), showing that the Personal Consumption Expenditures (PCE) Price Index remained unchanged at 3.7% YoY.

The core PCE Price Index, which excludes food and energy prices, held steady at 3.3%, in line with market consensus.

According to CME FedWatch tool, markets now price a nearly 38% chance of a 25 basis points (bps) Federal Reserve rate hike in September, up from 36% before the data release.