Gold declined on Thursday as traders awaited upcoming U.S. inflation data that could shape Federal Reserve rate-hike expectations. The metal’s movement was influenced by anticipation of the Producer Price Index (PPI) release on Thursday and the Consumer Price Index (CPI) data due Friday. These reports are expected to set the tone for the September 15-16 Federal Reserve meeting, where policymakers will assess the need for further interest rate increases.

According to Critical Metals, the inflation readings will be pivotal in determining whether the Fed maintains its tightening stance or signals a pause. Market participants are closely monitoring the data for clues about inflation trends and the central bank’s future policy direction. The interplay between the PPI and CPI figures will likely influence investor sentiment toward gold, which often moves inversely to real interest rates and dollar strength.

As inflation gauges approach, gold’s price action remains sensitive to shifts in monetary policy outlook.