Gold prices have pulled back from a two-month high, with market attention now shifting to U.S. CPI data.

As the inflation report in the United States is about to be released, gold prices have retreated from a two-month high. This report may provide new clues about the Federal Reserve's willingness to raise interest rates. On Tuesday, gold prices fell by more than 0.7%, despite having earlier in the day surpassed $1,400 per ounce, reaching the highest level since early June. Gold prices had previously risen for two consecutive days, with a breakthrough of the 100-day moving average stimulating technical buying. This came as a sign of recovery after recent weeks saw bottom-fishing buyers emerge and inflows into Chinese gold ETFs. Traders are now focused on the latest U.S. inflation data set to be released on Wednesday. According to the median forecast of surveyed economists, the widely watched CPI is expected to rise by 0.1% in July, following a drop of 0.4% the previous month. A moderate increase in prices, after a weak employment report released last Friday, may help alleviate the Federal Reserve's inflation concerns.