Gold Heads for Monthly Decline Amid Interest Rate Expectations

Gold prices remained steady on Wednesday but are still poised to decline for the month as investors await US inflation data and its implications on interest rates.

The spot price of gold was little changed at $4,178.59 per ounce, while US gold futures gained 0.7% to $4,210.30. Gold is down nearly 6% so far this month.

Investors are paying close attention to the US personal consumption expenditures (PCE) price index, due for release at 1230 GMT on Wednesday. The nonfarm payrolls report is scheduled for Friday.

Federal Reserve Bank of New York President John Williams stated that the central bank has time to weigh economic data before deciding when to hike interest rates again. He added that one more increase is likely before the year ends, with a 50% chance of a Fed rate increase in October and a 92% chance of a hike in December.