Gold Rises Despite Dollar Surge as Treasury Yields Slide

Gold's price rose by over 0.4% on Thursday to $4,175 as US Treasury yields declined following Wednesday's inflation data, which led to a decrease in expectations for a Federal Reserve interest rate hike in October.

The Core Personal Consumption Expenditures (PCE) Price Index came in at 3.4% YoY, unchanged and below forecasts of a 3.3% jump, causing money markets to shift their bets towards a near 70% chance of an interest rate hold for the October meeting.

The US Dollar Index (DXY), which measures the American currency value against six others, rose by 0.61% to 102.08, despite the decrease in expectations for a rate hike.