Gold Holds Firm Above $4,300 as Dollar Strength Weighs on Rally

Gold prices retreated from their June high on Tuesday due to a firmer US dollar. The dollar index edged higher as markets reassessed the Federal Reserve's policy path ahead of key inflation data.

The metal remains supported above $4,300 per ounce level, with analysts attributing its resilience to ongoing central bank purchases, geopolitical uncertainty, and concerns over fiscal deficits in major economies.

Despite the pullback, gold's ability to hold above $4,300 signals that dip-buying interest remains intact. Market participants are closely watching the upcoming US Personal Consumption Expenditures (PCE) price index, which could reinforce expectations of prolonged higher interest rates or revive rate-cut bets.

The metal's performance this year has been remarkable, with gains of over 20% driven by strong safe-haven demand and central bank buying. However, gold's sensitivity to US real yields and the dollar means that near-term volatility is likely to persist.