Gold Slips on Hawkish Inflation Data Ahead of Jackson Hole
Gold prices slipped on Wednesday as investors digested fresh inflation data from the United States and looked ahead to Federal Reserve Chair Kevin Warsh's speech at Jackson Hole.
The Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred measure of inflation, rose 3.7% year-over-year in July, matching the pace seen in June but coming in just above market expectations of 3.6%
Despite the slightly hotter-than-expected headline inflation figure, the overall tone did little to shift the market's baseline expectations for the Fed's next move.
According to the CME FedWatch Tool, traders assigned a 36% to 40.4% probability of a rate hike at the Fed's September 16 meeting, with the odds of rates remaining steady ranging from about 59.6% to 64%