Gold holds steady near $4,650 as investors await critical US inflation data

Gold is sitting near multi-month highs, hovering around $4,650 per ounce as traders collectively hold their breath for the Personal Consumption Expenditures price index report due August 26. The metal touched $4,635 on August 24, its highest level since mid-May, before pulling back slightly. Gold gained roughly 7% over just five trading days heading into August 25, fueled by a softer dollar, expanded US Treasury bond buyback operations, and safe-haven demand. The inflation picture The PCE report, scheduled for 8:30 AM ET on August 26, is the Federal Reserve’s preferred inflation gauge. The July Consumer Price Index came in at 3.4% year-over-year, a slight decline from June’s 3.5% reading. On a month-over-month basis, prices rose just 0.1%. Core inflation, which strips out food and energy, printed at 2.5% year-over-year. Central banks keep stacking Poland’s gold reserves grew to 640.2 metric tons by the end of July 2026, part of a broader trend of sovereign institutions diversifying away from dollar-denominated assets. The US Treasury’s expanded bond buyback operations have also played a role in the recent rally. These operations effectively inject liquidity into the bond market, wh...