Gold drops 1% after in-line U.S. inflation data

Business Recorder reported that spot gold dropped 1% to $4,611.79 an ounce by 1310 GMT on Wednesday, extending its losses after a climb to the highest level since May 14 the previous day. U.S. gold futures slipped 0.6% to $4,667.10, and a 0.2% rise in the dollar made the metal more costly for holders of other currencies.

Inflation figures released by the Commerce Department showed the PCE price index, which the Fed relies on for its target, rising 3.7% over the 12 months to July, a touch above the 3.6% that Reuters-polled economists had expected. That outcome lifted the odds of a rate increase next month to 40% from 36% before the data, according to the CME FedWatch Tool, while 60% of traders still expect rates to stay put.

Peter Grant of Zaner Metals called the earlier advance a case of profit taking and said gold is consolidating within the previous session's range. He also argued the metal's uptrend appears to be re-establishing itself, pointing to a possible return above $5,000 this year and a new all-time high during the second quarter of 2027. Elsewhere, silver lost 0.7% to $68.15 an ounce, platinum slipped 0.3% to $1,851.55 and palladium gained 0.5% to $1,333.50.