Softer Inflation Print Foiled by Upbeat Growth Revision

Gold prices steadied near $4,178.88 an ounce on Thursday morning after spiking towards $4,220 on Wednesday afternoon following the release of softer-than-expected inflation data.

The U.S. Bureau of Economic Analysis reported that core PCE, the Federal Reserve's preferred inflation measure, rose 3.0% year-over-year in August, missing the 3.3% consensus forecast.

However, the same report also carried an upward revision to second-quarter GDP growth, from 1.5% to 2.2% annualized, which swung gold's response in favor of growth data over inflation data.

A softer-than-expected inflation print should lower the cost of holding a non-yielding asset like gold, but growth revisions matter more for the Fed's next move.