Gold Slips Ahead of US PCE Report as Traders Reduce Exposure
The price of Gold has slipped ahead of the US PCE inflation report, which is due to be released at 12:30 GMT. Traders are reducing their exposure to the metal in anticipation of the data, which could impact interest rates and the overall market.
The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, is expected to show headline PCE inflation easing to 3.6% YoY in July from 3.7% in June. The core reading is forecast to hold steady at 3.3%. A soft inflation report could encourage traders to scale back expectations of a Fed interest rate hike at its upcoming meeting.
The US Dollar has firmed modestly on Wednesday, weighing on Dollar-denominated Gold. However, the Dollar remains pinned near its recent lows after last week's sell-off. The geopolitical front has also been impacted by news that the Strait of Hormuz will remain closed until the United States fulfils its commitments under the Memorandum of Understanding (MOU).