Gold Prices Retreat as Investors Await Key Inflation Data

Gold prices retreated on Wednesday after hitting a three-month high in the previous session. The decline came as investors awaited key US inflation data to gauge the Federal Reserve's interest-rate path.

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

Traders are focusing on the US Personal Consumption Expenditures (PCE) price index for July, due out at 1230 GMT. A softer-than-expected inflation reading could boost gold prices, according to Wael Makarem, financial markets strategists lead at Exness.

Makarem said that a dovish or balanced message from Fed Chairman Kevin Warsh on Friday at the central bank's Jackson Hole symposium would also support gold prices. A renewed deterioration in confidence around US fiscal sustainability could further benefit gold.