Gold ticks lower, US inflation data in spotlight

Business Recorder reported that spot gold slipped 0.3% to $4,642.74 an ounce on Wednesday, easing back after prices reached their highest level since mid-May on Tuesday. Investors were waiting for the US Personal Consumption Expenditures price index for July, the inflation gauge the Federal Reserve prefers, due at 1230 GMT. The metal had jumped last week after the US Treasury announced a bond buyback.

Markets are also looking ahead to Friday, when Fed Chair Kevin Warsh speaks at the Jackson Hole symposium. Exness strategist Wael Makarem said gold would benefit most if inflation came in below forecasts and Warsh struck a dovish or even-handed tone. Earlier in August, US figures revealed a surprise drop in nonfarm payrolls, while consumer inflation matched forecasts, easing bets on a September rate increase. According to CME FedWatch data, traders put a 61.6% chance on the Fed leaving rates unchanged next month.

Geopolitics also featured as Iran announced a resumption of negotiations with Oman about the Strait of Hormuz, and oil fell as a result. IMF Managing Director Kristalina Georgieva said the global economy had absorbed the energy fallout from the Iran war more smoothly than anticipated, though she flagged worsening fiscal conditions in some countries. Spot gold was seen testing resistance at $4,681, with a break above that level possibly lifting it toward the $4,707 to $4,743 range, according to Reuters technical analyst Wang Tao.