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Gold slips 0.6% as US inflation eases but keeps yields rising

XAU/USD was trading around $4,155 after core PCE was unchanged at 3.0% annually in August.

Reported · Written up by our desk · Precious Metals

Gold prices retreated on Wednesday, falling 0.6% as investors weighed new US inflation data alongside ongoing strength in US yields, according to FXStreet.

FXStreet said the Fed’s preferred core Personal Consumption Expenditures (PCE) Price Index was unchanged from July at 3.0% annually in August, below the 3.3% forecast, while the headline PCE was 3.4% and below the 3.7% estimate.

The report noted traders adjusted rate expectations after the release, making a U turn in pricing for a Fed hold at the October meeting, with odds near 62% as cited by Prime Terminal.

FXStreet also pointed to separate labor data, saying ADP showed private companies added 90K workers, above the 70K estimate, alongside discussion of the US Dollar Index’s mixed reaction.

Latest closeGold $4,189.00 ▲0.2%|Dollar index 101.48 ▲0.1%

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