Gold Retreats as Traders Eye US Inflation Data and Jackson Hole Speech

Gold prices retreated on Wednesday after hitting a three-month high on Tuesday due to the US Treasury's expanded bond buyback program.

The program has pressured bond yields, making gold more attractive as a non-yielding asset. However, investors are now focusing on the upcoming Personal Consumption Expenditures price index for July, which could shape the Federal Reserve's next policy move.

Fed Chair Kevin Warsh is also set to speak at the Jackson Hole symposium on Friday, and his remarks may provide further direction for gold prices.

Market participants are currently pricing in a 61.6% chance that the Fed will keep interest rates steady in September, according to the CME FedWatch Tool.