Gold prices declined on Wednesday as the dollar gained, with investors awaiting a key US inflation report expected later this week for more insight into the potential size of a September interest rate cut.
Spot gold decreased by 0.7% to $2,507.64 per ounce by 0531 GMT. The metal had reached a record high of $2,531.60 on August 20, according to Reuters. US gold futures fell by 0.4% to $2,542.80.
The dollar index rose by 0.3%, reducing the appeal of gold for holders of other currencies.
Market participants are anticipating the release of US personal consumption expenditure (PCE) data, the Federal Reserve’s preferred inflation measure, on Friday. A report on Tuesday indicated that US consumer confidence reached a six-month high in August, although concerns about the labour market are increasing.
China’s net gold imports via Hong Kong in July increased by approximately 17% from the previous month, marking the first gain since March, according to data released on Tuesday.
In other metals, spot silver dropped 1.2% to $29.63 per ounce, platinum declined 0.3% to $950.80, and palladium fell 0.8% to $962.11.
