Gold Stagnant Ahead of PCE Data Release

Gold prices remained stable on Wednesday but were poised for a monthly loss due to expectations of higher interest rates. The US Federal Reserve's next policy move is still uncertain, with investors waiting for the release of US inflation data at 1230 GMT.

The spot gold price was little changed at $4,180.30 per ounce, while US gold futures gained 0.8% to $4,212.70. However, the metal has lost 6% so far this month.

Higher interest rates typically reduce gold's appeal as it does not offer a yield. The CME's FedWatch Tool indicates that traders see a 47% chance of a Fed rate increase in October and a 92% chance of a hike in December.

New York Fed President John Williams said that Fed policymakers probably only need to deliver one more hike this year to get inflation back on track to the central bank's 2% goal.