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Gold slips from three-month high as US inflation prints warmer
Comex gold for December fell 1.0% to $4,649.10 an ounce by late morning in New York, after hotter-than-expected July PCE left markets weighing sticky inflation.
Gold retreated from a three-month high on Wednesday after a hotter-than-expected US inflation reading pushed traders to recalibrate rate expectations, with attention turning to Kevin Warsh’s first Jackson Hole speech as Federal Reserve chair. Comex gold for December delivery, the most active contract, fell 1.0% to $4,649.10 an ounce by late morning in New York, after an overnight high of $4,730.90.
Spot gold was 1.4% lower at $4,592.53, still up about 14% in August and above the 200-day moving average. Comex silver for September slipped 1.1% to $67.96 an ounce, while spot silver fell 0.8% to $68.03.
The pullback accelerated after the Fed’s preferred inflation gauge came in warm, with headline PCE up 3.7% year over year in July, slightly above forecasts, while the core PCE measure held at 3.3%. Mining.com noted that higher borrowing costs are typically a headwind for non-yielding bullion.
Despite the dip, broader flows have supported the complex, with bullion-backed gold ETFs adding more than 28 tonnes last week, the most since January. Mining.com also pointed to a sharp rally in precious-metals equities in August, even as names like Agnico Eagle, AngloGold, and Wheaton Precious Metals eased on the day.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%