Gold Retreats from Record High Ahead of US Inflation Data

Gold prices retreated from their all-time high of $4,700 per ounce as investors adopted a cautious stance ahead of the release of the US Personal Consumption Expenditures (PCE) price index.

The PCE index is the Federal Reserve's preferred measure of inflation and will be scrutinized for any signs of sticky inflation. A higher-than-expected reading could solidify the case for prolonged higher rates, which typically dampens demand for non-yielding assets like gold.

Analysts are divided on the metal's near-term trajectory, with some arguing that fundamental drivers remain intact and others cautioning that the market may be overbought and vulnerable to a correction if the Fed signals a more hawkish stance.