Gold Consolidates Ahead of Key US Data Releases

Gold prices are consolidating below $4,200 ahead of key US economic data releases. The price of gold is struggling to capitalize on Tuesday's late rebound, despite renewed geopolitical concerns and a rebounding oil price-driven inflation worry.

The Federal Reserve's preferred gauge of inflation, the Personal Consumption Expenditures (PCE) Price Index, will be closely watched by markets for its impact on interest rate expectations. Currently, there is a 47% chance of a Fed rate hike in October, according to CME Group's FedWatch Tool.

New York Fed President John Williams said that policymakers may only need to deliver one more hike this year to get inflation back on track to the central bank's 2% target. This tempered approach to interest rates has weighed heavily on US Treasury bond yields and fueled a correction in the US Dollar (USD).