Gold Prices Dip as Investors Await US Inflation Data

Gold prices eased on Wednesday after reaching a three-month high the previous day, as investors await key US inflation data to gauge the Federal Reserve's interest-rate path.

The spot gold price dropped 0.3% to $4,642.74 per ounce by 0410 GMT, while US gold futures rose 0.1% at $4,700.70.

Market attention is focused on the upcoming release of the US personal consumption expenditures (PCE) price index for July, which will be closely watched to determine the Fed's interest-rate path.

Financial markets strategist Wael Makarem at Exness said a soft inflation reading combined with a dovish message from Fed chairman Kevin Warsh would support gold prices, reducing the opportunity cost of holding a non-yielding asset.