Gold Holds Steady Near $4,650 as Traders Await US PCE Data

Gold (XAU/USD) prices held steady near $4,650 on Wednesday as traders awaited the release of the US Personal Consumption Expenditures (PCE) Price Index for cues on the Federal Reserve's interest rate path. The non-yielding metal remains within striking distance of its highest level since May 14.

The outlook will drive the US Dollar and Gold prices, with investors keenly watching Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium for more clues about the interest rate path. Expectations have shifted towards a policy hold at the upcoming September 15-16 FOMC meeting due to cooling price pressures and a sluggish labor market.

The US Treasury's buyback strategy has led to a decline in US bond yields, further pressuring the USD. Positive developments surrounding the Middle East crisis have weighed on crude oil prices, easing inflation fears and exerting additional pressure on US bond yields.