Gold falls toward $4,600 as stronger US data cools Fed-cut odds
Gold slipped toward $4,600 an ounce as July PCE and other US releases came in slightly above forecasts, shifting pricing toward a 60% chance the Fed holds rates next month.
Gold prices fell toward $4,600 an ounce on Wednesday, on track to snap a three-session winning streak, as investors assessed fresh US economic data for clues on the Federal Reserve’s interest-rate path.
The PCE price index rose 0.2% in July, above expectations for a 0.1% increase, while annual inflation reached 3.7% versus forecasts of 3.6%.
Core PCE rose 0.2% month-over-month and 3.3% year-over-year, both in line with expectations.
Consumer spending and income also came in slightly above forecasts.
Separate data showed US GDP grew 1.5% in Q2, in line with the initial estimate, while durable goods orders rose 1.1% in July, beating expectations of 0.5%.
Markets are now pricing around a 60% chance of the Fed leaving rates unchanged next month, down from 64% before the data, according to the CME FedWatch Tool.
On the geopolitical front, Iran said it had resumed talks with neighboring Oman on managing the Strait of Hormuz, amid mounting economic pressure from US President Donald Trump.