Ammon News - Gold eased on Wednesday after scaling a more than three-month ‌high in the previous session, as investors awaited a key U.S. inflation report to gauge the Federal Reserve's interest-rate path.

Spot gold eased 0.3% to $4,642.74 per ounce, by 0410 GMT. Prices climbed to their ​highest since mid-May on Tuesday after last week's sharp gains following the U.S. ​Treasury's bond buyback announcement. U.S. gold futures rose 0.1% at $4,700.70.

The Fed's preferred ⁠inflation gauge, the U.S. Personal Consumption Expenditures (PCE) price index for July, is due at ​1230 GMT. Attention is also on Fed Chairman Kevin Warsh's speech on Friday at ​the central bank's Jackson Hole symposium.

"For gold, the most supportive outcome would be softer-than-expected inflation combined with a dovish or balanced message from Warsh, reinforcing expectations for lower real yields and reducing the ​opportunity cost of holding a non-yielding asset," said Wael Makarem, financial markets strategists ​lead at Exness.

"A renewed deterioration in confidence around U.S. fiscal sustainability could also be important (for gold), particularly ‌given ⁠the recent Treasury buyback plans and their impact."
Earlier this month, data showed an unexpected decline in U.S. nonfarm payrolls and in-line consumer inflation, tempering expectations of a September rate hike.
Traders are pricing in a 61.6% chance that the Fed will leave rates ​unchanged next month, according ​to the CME ⁠FedWatch Tool.

On the geopolitical front, Iran said it had restarted talks with neighbour Oman to manage the Strait of Hormuz, sending oil ​prices lower.

The global economy has weathered the Iran war energy shock ​better than ⁠feared, International Monetary Fund Managing Director Kristalina Georgieva said. However, she raised concerns about deteriorating fiscal conditions in some countries.

Spot gold may retest a resistance at $4,681, a break above which ⁠may ​trigger a gain into the range of $4,707 to $4,743, according ​to Reuters technical analyst Wang Tao.

Spot silver gained 0.9% to $69.26, platinum rose 0.4% to $1,865.09 and palladium ​firmed 1.3% to $1,343.75.


Reuters