Gold price retreats from three-month high as inflation US gauge runs warm
Gold ETFs added 28 tonnes last week, the most since January, but TD Securities analysts caution "this rally may be too early for a renewed run back to record highs."
Gold prices retreated from a three-month high on Wednesday after a hotter-than-expected US inflation reading, with traders reacting to Federal Reserve Chairman Kevin Warsh's first Jackson Hole address. Comex gold for December delivery fell 1% to $4,649.10 an ounce, retreating from an overnight high of $4,730.90, while spot gold declined 1.4% to $4,592.53.
Silver prices also slipped, falling 1.1% to $67.96 an ounce and 0.8% to $68.03. The retreat was amplified by the US inflation gauge, which showed headline PCE rising 3.7% from a year earlier, surpassing forecasts. Analysts cautioned that the rally may be premature due to persistent inflation risks and higher borrowing costs, which are typically headwinds for non-yielding assets like gold.
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