Gold Prices Flat Amid Rate Hike Expectations, US Inflation Data Looms
Gold prices remained steady on Wednesday but were still on track for a monthly loss due to expectations of higher interest rates. The US personal consumption expenditures (PCE) price index is due at 1230 GMT, and investors are waiting for clues on the Federal Reserve's policy path.
The FedWatch Tool suggests that traders see a 50% chance of a rate increase in October and a 92% chance in December, which could continue to weigh on gold prices. In a high-interest rate environment, investors often favor yield-bearing assets over gold.
US consumer confidence plunged to a near 12-1/2-year low in September, with households expecting a deterioration in business and labor market conditions over the next six months amid the Middle East conflict and rising rates.