Gold Slides as US Yields Rise Amid Mixed Inflation Data

Gold prices retreated on Wednesday after US inflation data came in above the Federal Reserve's 2% goal but below estimates, prompting investors to price in a less hawkish central bank than expected.

The core Personal Consumption Expenditures (PCE) Price Index was unchanged from July's print at 3.0% annually in August, below forecasts of 3.3%. The headline print was 3.4% for the same period, unchanged from July's and beneath forecasts for a rise to 3.7%

The data triggered a reaction by money markets, with traders making a U-turn and now expecting the Fed to hold rates at the October meeting, with odds standing near 62%, according to Prime Terminal.