Gold Price Slows Amid Rate Hike Concerns Ahead of US Inflation Data
The gold price has slowed its ascent ahead of Friday's US inflation data release. Spot gold currently trades near $4,700 after rising by 14% in August.
July's Personal Consumption Expenditures (PCE) index showed a year-over-year increase of 3.7%, exceeding the Federal Reserve's 2% target. Core PCE also rose 0.2% from June and stood at 3.3% over the year, further underscoring rate hike concerns.
Analyst Linh Tran of XS.com believes gold will stay within a $4,500 to $4,700 range before a fresh move takes shape, indicating a period of price balance after the strong August rise.
The next key market signal is expected from Federal Reserve Chair Kevin Warsh's speech at Jackson Hole. A hawkish tone could lift Treasury yields and pressure gold, while a softer stance could support another rally.