Gold Price Holds Below $4,650 as US PCE Release Looms

Gold prices held below $4,650 as investors eyed the US PCE release for cues on Federal Reserve rate outlook. The US dollar gained some traction ahead of the data, weighing on gold.

The US inflation data and Fed Chair Kevin Warsh's remarks at the Jackson Hole Symposium are expected to offer more insights into the interest rate path, which will drive the dollar and gold prices.

Expectations have shifted towards a policy hold at the upcoming FOMC meeting due to cooling price pressures and a sluggish labor market. The US Treasury's buyback strategy has led to a decline in bond yields, while positive developments surrounding the Middle East crisis have eased inflation fears and put pressure on bond yields.

Crude oil prices dropped to a nearly two-week low after Iran said it had restarted talks with Oman to manage commercial shipping traffic through the Strait of Hormuz. The US offered sanctions relief and an end to the naval blockade in exchange for reopening the Strait and halting attacks by regional proxies, reviving hopes for a diplomatic resolution.