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.
Key Takeaways
AISpot gold prices fell by 1% on Wednesday to $4,611.79 per ounce, following the release of US inflation data that largely aligned with market expectations.
On Tuesday, gold prices had climbed to their highest level since May 14. US gold futures also declined, dropping 0.6% to $4,667.10 per ounce.
The US Department of Commerce's Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve uses to set its inflation target, rose by 3.7% in the twelve months ending in July.
Meanwhile, the US dollar strengthened by 0.2%, making dollar-priced gold more expensive for holders of other currencies.
Changes in other precious metals
Among other precious metals, spot silver fell 0.7% to $68.15 per ounce, platinum slipped 0.3% to $1,851.55, while palladium rose 0.5% to $1,333.50.