Gold Poised for Monthly Decline as Inflation Data Looms

Gold prices were steady on Wednesday but still poised to end the month in the red. The precious metal has lost 6% so far this month, weighed down by expectations of higher interest rates and a strong dollar.

The US personal consumption expenditures price index is due for release at 1230 GMT, which could influence expectations for US monetary policy and gold prices.

According to Tony Sage, CEO of Critical Metals, a softer reading in the PCE data would likely support gold and push prices back towards $4,200-4,300. However, a hotter number could lead to higher yields and a stronger dollar, putting renewed pressure on gold and testing the $4,100 level.

The Federal Reserve raised rates by 25 basis points this month, and traders see a 47% chance of another hike in October and a 92% chance of one in December. Higher interest rates typically reduce gold's appeal since it does not offer a yield.