Soft Inflation Data Lifts Gold as Fed Hike Odds Decline

Gold prices rose on Wednesday as softer U.S. inflation data eased pressure for an October Federal Reserve rate hike, according to Kitco News.

The August Personal Consumption Expenditures (PCE) report showed a 0.3% increase in headline PCE and 3.4% year-over-year rise, while core PCE rose 0.2% on the month and 3.0% year over year.

This shift in market positioning reduced the likelihood of an October Fed hike to around 40%, down from about 70% earlier in the week.

Despite resilient spending and firmer private payrolls, softer inflation supports gold through lower rate expectations.