Gold Retreats as Investors Await Fed Inflation Data

Gold prices retreated slightly on Wednesday after hitting a three-month high the previous day, as investors awaited key inflation data from the US Federal Reserve. Spot gold eased 0.3% to $4,642.74 per ounce by 0410 GMT.

The Fed's preferred inflation gauge, the U.S. Personal Consumption Expenditures (PCE) price index for July, is due at 1230 GMT. Attention is also on Fed Chairman Kevin Warsh's speech on Friday at the central bank's Jackson Hole symposium.

Financial markets strategist Wael Makarem said a softer-than-expected inflation reading combined with a dovish message from Warsh could be supportive of gold prices, as it would reduce real yields and make holding non-yielding assets more attractive.