Gold Drops Below $4600 as Yields and Dollar Strengthen After PCE Data

Spot gold fell 1.42% to around $4,591.70 an ounce and silver slipped 0.78% to $68.00 after hotter-than-expected PCE inflation data lifted Treasury yields and firmed the dollar, triggering profit-taking ahead of Nvidia earnings and the Jackson Hole speech.

July PCE rose 0.2% month-over-month and 3.7% year-over-year, beating forecasts, while core PCE hit 3.3%. Two-year yields moved above 4.22% and 10-year yields above 4.66%, pushing October Fed hike odds over 50%. Equity markets closed nearly flat.

Oil prices eased with WTI near $82.23 and Brent near $87.84 as Iran-Oman talks signaled possible reduced shipping risks in the Strait of Hormuz. Gold faces resistance at $4,640 and support at $4,573; silver resistance at $68.20 and support at $67.47.