Gold faces monthly decline ahead of US inflation data
Expectations of a U.S. interest rate hike are impacting the price of gold, which is heading towards a monthly loss of 6%. Investors are awaiting the release of personal consumption expenditure (PCE) data, which will determine the direction of monetary policy. A lower reading is expected to support gold prices, while higher figures could push yields and the dollar higher, putting pressure on the metal. Additionally, forecasts suggest a possible 25 basis point increase in the Federal Reserve's interest rate in October, with continued expectations of a potential hike in December. This increases pressure on gold prices as the likelihood of further rate hikes grows.
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