Overnight in the gold market, spot gold in London fell 0.50%, while SHFE gold declined 0.28%. Gold prices edged lower as the market focused on tonight's US Consumer Price Index data release. Given the drop in gasoline prices and cooling housing inflation in July, the inflation data for the month is expected to show a month-over-month decline. Current market expectations place July CPI at a year-over-year increase of 3.5%, with core CPI rising 2.5% year-over-year. If the inflation data comes in below expectations, concerns over interest rate hikes may cool again, potentially leading to increased volatility in gold prices.

The data itself is surrounded by uncertainty and speculative trading. Before the data is released, gold prices are being approached with caution, with investors closely monitoring the metal's performance in the upper price range. On the geopolitical front, citing sources from Wall Street Journal, a senior advisor to Iran's Supreme Leader stated that the Strait of Hormuz would not reopen until Iran's conditions are met. Additionally, US officials reported that American forces fired on a ship attempting to breach a US blockade of Iranian ports. Despite Pakistan signaling on Tuesday that negotiations between the US and Iran might be nearing an agreement, the actual reopening of the Strait of Hormuz faces significant obstacles.