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Gold prices retreated toward the $4,610 per ounce level during early Asian trading on Thursday, stepping back from a three-month peak. The pullback in XAU/USD followed the release of the U.S. Personal Consumption Expenditures (PCE) price index data, which came in largely in line with consensus expectations. The inline figures reinforced market expectations for the Federal Reserve's upcoming policy decisions. The benchmark inflation reader reassured investors that price pressures are aligning with projections, reducing immediate uncertainty but bolstering expectations regarding Fed interest-rate adjustments next month. As a non-yielding asset, Gold often faces selling pressure when interest rate expectations firm up, driving capital toward yield-bearing assets and supporting the U.S. Dollar. Moving forward, market participants will monitor incoming macroeconomic releases and Treasury yield movements for further direction. Investors in the MENA region, particularly heavy physical gold buyers in the Gulf, should watch key support levels closely as shifted Fed expectations continue to reprice precious metals.
