Gold Stays Steady Ahead of US Inflation Data

Gold prices held steady in early Asian trade on Wednesday as investors awaited key US inflation data for clues on the Federal Reserve's interest-rate path.

The US Personal Consumption Expenditures (PCE) price index for July is due at 1230 GMT, a figure that could influence expectations of a rate hike in September. According to the CME FedWatch Tool, traders are pricing in a 60.4 per cent chance that the Fed will leave rates unchanged next month.

Lower interest rates tend to boost gold's appeal as it is a non-yielding asset. Meanwhile, Fed Chairman Kevin Warsh is set to speak at the central bank's Jackson Hole symposium on Friday.