Gold prices edged lower during Asian trading on Wednesday as investors turned their attention to the United States Personal Consumption Expenditures (PCE) Price Index for July, due later in the session.
By 3:55 pm AEST (5:55 am GMT), spot gold was trading 0.4% lower at US$4,369.04 an ounce.
Renewed optimism over the potential reopening of the Strait of Hormuz has weighed on oil prices, easing concerns over inflation and reducing expectations for a Federal Reserve interest-rate hike next month.
Meanwhile, escalating tariff tensions between the U.S. and Canada are also weighing on the U.S. dollar.
The Canadian government said late Tuesday that it would impose tariffs of 15%, 25% and 50% on about 700 products, with the measures taking effect on 8 September.
Traders are now turning focus towards fresh data releases, with U.S. annual PCE inflation expected to ease to 3.6% from 3.7% in June, while annual core PCE inflation is forecast to remain unchanged at 3.2%.
