Gold Prices Ease Ahead of Key US Inflation Data Release
Gold prices have eased slightly after reaching a three-month high on Tuesday. This comes as investors await the release of US inflation data, which is set to be announced at 1230 GMT today. The Personal Consumption Expenditures (PCE) price index for July will provide insight into the Federal Reserve's interest-rate path.
The PCE index is the Fed's preferred measure of inflation. It is closely watched by investors as it provides a more comprehensive picture of inflationary pressures than other indices. Gold prices had surged to their highest level since mid-May after last week's bond buyback announcement by the US Treasury.
Spot gold eased 0.3% to $4,642.74 per ounce, while US gold futures rose 0.1% at $4,700.70. The market is also looking ahead to Fed Chairman Kevin Warsh's speech on Friday, which may provide further guidance on monetary policy.