Gold Eases Ahead of US PCE Inflation Data

Gold eased below $4,650 an ounce on Wednesday, but stayed close to three-month highs as investors awaited the latest US PCE price index report, the Federal Reserve’s preferred measure of inflation. Attention is also turning to Fed Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday, although he is not expected to provide clear guidance on the central bank’s policy decision in September. Investors continued to assess the US Treasury’s decision to double liquidity-support buyback operations for longer-dated notes and bonds, a move that helped push the dollar to a more than three-month low last week. Meanwhile, oil prices fell for a third consecutive session, easing inflation concerns and further supporting the bullish outlook for gold. Elsewhere, China’s net gold imports through Hong Kong rose around 11% month-over-month in July, supported by stronger investment demand.

Gold prices fell to around $4,620 an ounce on Tuesday after reaching a more than three-month high of $4,696.2 earlier in the session, as the rally lost momentum ahead of US inflation data and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium later this week. Investors are also assessing the US Treasury’s decision to double liquidity-support buyback operations for longer-dated notes and bonds, which helped push the dollar to a more than three-month low last week. Markets are currently pricing in a 38% chance of a US rate hike in September, according to the CME FedWatch Tool. Meanwhile, China’s net gold imports via Hong Kong rose around 11% month-over-month in July, supported by stronger investment demand. On the geopolitical front, Iran pledged to resist expanded US sanctions, expressing confidence that major trading partners would reject the pressure campaign while signaling that Washington remained interested in reviving talks.

Gold traded around $4,650 an ounce on Tuesday, staying close to its highest levels in more than three months as US government interventions in the bond market revived the so-called debasement trade that fueled gold’s 65% rally in 2025. The US Treasury Department announced an expansion of its buyback program for long-dated government debt last week in an effort to contain rising borrowing costs, with Secretary Scott Bessent saying he is prepared to increase the buybacks further while also flagging an upcoming longer-term fiscal plan. However, markets speculated that the measures may offer only a temporary solution, while renewing concerns over the risks of a US debt crisis, persistent inflation and dollar weakness. Gold-backed exchange-traded funds have also recorded increased inflows in recent weeks, signaling broader market participation and strengthening investment demand.