Gold futures eased 0.3% to $4,680.51 an ounce on Wednesday, while spot gold declined 0.7% to $4,624.97, retreating from a three-month high despite a broader retreat in oil prices and Treasury yields.
The pullback followed a three-week rally in the yellow metal, which had pushed prices to multi-month peaks amid heightened geopolitical risks and expectations of a dovish pivot by major central banks. Brent crude slipped below $90 a barrel, reducing inflationary pressure concerns that often support gold as a hedge.
Market pricing for a Federal Reserve rate hike at the September policy meeting eased, with traders citing upcoming U.S. economic data and remarks from Fed officials as key drivers. The Personal Consumption Expenditures (PCE) price index, due before the Wall Street open, was forecast to show a slight acceleration in core inflation to 0.2% month-on-month in July, matching the 3.3% year-on-year pace recorded in June.
Federal Reserve Governor Christopher J. Warsh’s first major speech as chair, scheduled for Friday at the Jackson Hole symposium, is expected to provide further signals on the central bank’s policy trajectory. Boston Fed President Susan Collins, in a recent essay, cautioned that without sustained disinflation, tighter monetary policy may soon be warranted.
Senior Market Analyst David Morrison at Trade Nation noted that the combination of macroeconomic data and Fed communications could serve as catalysts for the next significant move in gold prices.
