Gold prices set for monthly decline as investors await US inflation data

Gold prices experienced a decline on Wednesday and are projected to face a monthly drop, as expectations of interest rate hikes dampen the market prior to crucial US inflation data. The precious metal plummeted by 0.2 percent to $1,770.63 per ounce, marking a more than six percent decrease since the beginning of the month. Conversely, US gold futures experienced a slight increase of 0.5 percent to $1,201.90.

Analyst Tony Sieg of Critical Metals noted that the release of the Personal Consumption Expenditures (PCE) price index will be a critical gauge for gold, potentially shaping US monetary policy expectations and the trajectory of Treasury yields and the dollar. According to CME's FedWatch tool, traders have a 47 percent likelihood of an interest rate hike in October and a 91 percent chance of a rate increase in December.

Silver, platinum, and palladium, all precious metals, also experienced monthly declines, with spot silver falling 0.8 percent to $60.98, platinum remaining steady at $1,705.10, and palladium slipping 0.3 percent to $1,219.60.