Gold Prices Slide as Inflation Concerns Ease Ahead of Fed Meeting

Gold prices dropped from a three-month high as investors shifted their focus to the Federal Reserve's interest rate path ahead of the Jackson Hole gathering. The metal slumped to trade near $4,600 an ounce following a report showing US inflation remains above the Fed's target.

The dollar jumped and US bond yields edged higher after the print, bolstering bets that the central bank will start hiking borrowing costs by year-end. Higher interest rates typically reduce the appeal of non-yielding gold.