Gold on track for monthly decline as investors brace for US inflation data

Business Recorder reported that gold held firm on Wednesday, though it was on track for a monthly drop as traders priced in tighter US policy. At 0435 GMT, spot bullion was barely moved at $4,180.30 an ounce, but its loss for the month now stands at 6%. Attention also turned to American inflation numbers, which could offer hints on the Fed's next step.

US gold futures advanced 0.8% to $4,212.70. A stronger dollar, on course for a monthly rise, made the metal costlier for buyers using other currencies. A reading of the US personal consumption expenditures price measure follows at 1230 GMT, and according to the CME FedWatch Tool, traders put the chance of a Fed rate rise in October at 47% and in December at 92%.

Tony Sage, CEO of Critical Metals, said the release could shape views on US rate policy, Treasury yields and the dollar. Silver slipped 0.6% to $61.07, platinum dipped 0.2% to $1,703.19 and palladium eased 0.2% to $1,220.61, with all three also set for monthly declines. Separately, New York Fed President John Williams suggested policymakers probably need just one more rate hike this year to return inflation to the 2% target.