Gold falls 1% after US inflation data meets expectations
Gold prices dropped 1% after US inflation data matched forecasts, while the dollar strengthened against other major currencies.
Spot gold prices experienced a 1% decrease on Wednesday, settling at $4,611.79 per ounce after US inflation data met market expectations. The dollar bolstered its value against other major currencies during the same period. US gold futures also saw a 0.6% decline, trading at $4,667.10 per ounce on Tuesday. The US Department of Commerce's Bureau of Economic Analysis revealed that the Personal Consumption Expenditures (PCE) price index, a key inflation indicator utilized by the Federal Reserve, increased by 3.7% over the preceding twelve months, culminating in July.
As a consequence, dollar-priced gold became pricier for investors holding foreign currencies. Silver prices experienced a 0.7% drop, falling to $68.15 per ounce, while platinum experienced a slight decline of 0.3%, settling at $1,851.55. Palladium, however, showed a 0.5% increase, reaching $1,333.50.
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