26.08.202613:23:09UTC+00Gold Falls as Investors Digest Stronger US Data

Gold prices retreated toward $4,600 an ounce on Wednesday, poised to break a three-session winning streak, as investors digested fresh US economic data for signals on the Federal Reserve’s interest-rate trajectory.

The PCE price index rose 0.2% in July, exceeding expectations for a 0.1% increase, while annual inflation accelerated to 3.7% versus a 3.6% consensus forecast. Core PCE climbed 0.2% month-over-month and 3.3% year-over-year, both matching projections. Consumer spending and personal income also slightly outpaced expectations.

Separately, US GDP expanded 1.5% in the second quarter, consistent with the initial estimate, while durable goods orders increased 1.1% in July, more than double the 0.5% gain expected.

Following the data, markets are now assigning roughly a 60% probability that the Fed will leave interest rates unchanged next month, down from about 64% beforehand, according to the CME FedWatch Tool.

On the geopolitical front, Iran announced it has resumed talks with neighboring Oman on managing the Strait of Hormuz, amid mounting economic pressure from US President Donald Trump.