Gold prices declined on Wednesday, poised to end a three-session winning streak, as attention turned to U.S. inflation data set to be released later today, which may provide insights into the Federal Reserve’s perspective on interest rates, according to source. Spot gold declined by 0.9% to $4,616.62 per ounce as of 0927, following a rise to its highest level since May 14 on Tuesday, which was prompted by the recent bond buyback announcement from the U.S. Treasury Department. U.S. gold futures experienced a decline of 0.5%, settling at $4,672.10. “Gold prices are subdued today ⁠as the rally looks technically stretched and markets adopt a cautious stance ahead ​of key events that can shape its trajectory,” said Nikos Tzabouras.

The U.S. Personal Consumption Expenditures inflation report for July is scheduled for release at 1230, coinciding with Fed Chair Kevin Warsh’s remarks at the Jackson Hole Symposium on Friday. Soft producer and consumer inflation figures published this month have reduced the likelihood of an interest rate increase in September. Traders are currently estimating a probability of approximately 64% that the Federal Reserve will maintain the current interest rates in the upcoming month, as indicated by the CME FedWatch Tool.

Gold frequently diminishes in attractiveness when interest rates are elevated, owing to its lack of yield. “If Warsh remains tight-lipped about policy, then we may expect some renewed easing in the dollar and further interest in gold on the basis of ​uncertainty; if he ​is resolutely firm in ⁠his intentions, then gold may come under pressure,” said Rhona O’Connell. On the geopolitical front, Iran announced the resumption of discussions with neighbouring Oman regarding the management of the Strait of Hormuz, amid increasing economic pressures stemming from the actions of U.S. President Donald Trump in the broader conflict.

Meanwhile, China’s net gold imports through Hong Kong in July increased approximately 11% compared to the previous month, according to data released on Tuesday, bolstered by a rise in investment demand. Among other metals, spot silver slipped 0.3% to $68.46 per ounce, platinum dropped 0.3% to $1,852.06, and palladium gained 0.7% to $1,335.09.