Gold prices fell on Wednesday, snapping a three-session winning streak as investors turned cautious ahead of key US inflation data that could provide clues about the Federal Reserve’s interest-rate path.
Spot gold fell 0.8% to $4,618.03 per ounce by 1114 GMT, after touching its highest level since May 14 on Tuesday following the US Treasury Department’s recent bond buyback announcement. US gold futures also declined 0.4% to $4,673.90.
“Gold prices are subdued today as the rally looks technically stretched and markets adopt a cautious stance ahead of key events,” said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.
The US Personal Consumption Expenditures (PCE) inflation report for July is due at 1230 GMT on Wednesday. Investors are also awaiting comments from Fed Chair Kevin Warsh at the Jackson Hole Symposium on Friday.
On the geopolitical front, Iran said it had resumed talks with Oman on managing the Strait of Hormuz as it faces heightened economic pressure from US President Donald Trump.
Meanwhile, China’s net gold imports through Hong Kong rose about 11% month-on-month in July, data showed on Tuesday, supported by stronger investment demand.
Among other precious metals, spot silver fell 0.2% to $68.48 per ounce, while platinum gained 0.4% to $1,864.51 and palladium rose 1% to $1,339.75.
