XAU/USD retreats after US PCE inflation holds above Fed’s 2% target, bolstering the greenback ahead of Jackson Hole.
Gold prices fell below $4,600 in European trading as the US Dollar Index held above 99.00, supported by elevated US inflation data. The Personal Consumption Expenditures Price Index remained steady above the Federal Reserve’s 2% target, reinforcing expectations for tighter monetary policy.
Markets had priced in a 36% chance of a September rate hike, unchanged from prior levels, according to CME Group’s FedWatch Tool. Earlier in the week, XAU/USD tested $4,700 but failed to sustain gains, with technical indicators signaling moderating bullish momentum.
Immediate support lies at Wednesday’s low of $4,583, with the 200-day Simple Moving Average acting as a key level. Cautious sentiment ahead of the Jackson Hole symposium continues to weigh on precious metals.