Gold Consolidates Near Recent Highs as Dollar Weakness Supports Demand

Gold prices have stabilized near recent highs as the metal consolidates after its strong advance. The US Dollar's weakness and reduced expectations for a Federal Reserve rate hike continue to support demand for gold. Lower Oil prices have eased concerns about persistent inflation, while trade tensions between the United States and Canada add uncertainty to the market.

The US Treasury's expanded bond-buyback plan and strong physical demand from India provide additional support for gold. Markets are now focused on the upcoming release of the US core Personal Consumption Expenditures Price Index, which will impact expectations for interest rates and Treasury yields. A softer inflation reading could reduce pressure on the US Dollar and boost gold prices.

The technical structure of the XAU/USD chart remains firm, with gold holding above key breakout levels near $4,330 and $4,440. The price has formed rounded bottoms near support and is consolidating after its strong advance. If weakness continues, the $4,440 region could provide initial support.