Gold Price Plunges Below $4,600 as US Inflation Supports Dollar

The gold price has retreated below $4,600 as the US Dollar Index consolidates above 99.00, supported by sticky PCE Price Index figures and a cautious market sentiment ahead of the Jackson Hole symposium.

US data released on Wednesday revealed that the Personal Consumption Expenditures (PCE) Price Index remained steady well above the 2% target, adding pressure on the Federal Reserve to tighten its monetary policy. This has provided some support to the US Dollar and limited precious metals' rallies.

The technical analysis shows that gold remains bullish while above the 200-day Simple Moving Average (SMA). Momentum indicators in the daily chart are well within positive territory, with the Relative Strength Index (14) at 66 and the Moving Average Convergence Divergence (MACD) indicator retreating but still above zero.