Gold Dives on US Inflation Data as Fed Outlook Remains Fuzzy
Gold prices have taken a hit on Wednesday, falling 0.83% to around $4,620 per ounce as investors digested the latest inflation data from the US.
The Personal Consumption Expenditures (PCE) Price Index rose 3.7% year-over-year in July, slightly above market expectations of 3.6%, but the core PCE Price Index remained steady at 3.3% YoY.
Despite the stronger-than-expected headline reading, the report did little to alter market expectations for a potential interest rate hike by the Federal Reserve in September, with markets still pricing in around a 36% chance of a hike and 64% chance of no change.
The Fed's monetary policy outlook remains a key focus ahead of Friday's speech by Fed Chair Kevin Warsh at the Jackson Hole Economic Policy Symposium, which could provide fresh signals on the central bank's policy stance.