Gold Prices Tumble as Interest Rates Loom Large

Gold prices are poised to decline for the month of September due to investors' concerns about higher interest rates. The US dollar is expected to gain, making gold more expensive for holders of other currencies.

The spot price of gold was steady on Wednesday at $4,180.30 per ounce, but has lost 6% so far in September. US gold futures gained 0.8% to $4,212.70.

Investors are waiting for the release of the US Personal Consumption Expenditures (PCE) Price Index on Thursday at 12:30 pm GMT. The data will provide clues about the direction of US monetary policy and Treasury yields.

Tony Sage, CEO of Critical Metals, said that a softer reading in the PCE index could support gold prices and potentially lead to a return to the $4,200-$4,300 range. A hotter number, however, could push yields and the US dollar higher, putting pressure on gold.