Gold Prices Slide as US Inflation Eases, Boosting Hold Bets for Fed

Gold prices slipped below $4,400 an ounce as signs of easing US inflation reinforced expectations that the Federal Reserve will keep interest rates steady in September. The precious metal fell by up to 1.5% to $4,343.91 on Thursday (Aug 13), following a decline in wholesale inflation and energy costs.

The US Federal Reserve's decision to hold interest rates steady has boosted gold prices, which typically perform well when interest rates are low or stable. However, if interest rates remain elevated for an extended period, it could weigh on gold by making bonds more attractive to investors.

The Federal Reserve's next meeting is in September, and investors will be watching the upcoming reports on employment as well as Fed Chairman Kevin Warsh's remarks at the Jackson Hole symposium. Additionally, any flare-ups in the Middle East could lead to higher energy prices and a return of inflationary risks.