Gold Prices Rebound as Dollar and Yields Ease

Gold prices have rebounded modestly from a one-week low after the US Dollar and Treasury yields eased.

The Federal Reserve's hawkish expectations remain a key headwind, with markets pricing in a stronger chance of an October rate hike.

Growth in inflation pressures due to higher oil prices is complicating the Fed's efforts to bring inflation down to 2% target.

Next week's PCE inflation data, ISM Manufacturing PMI, and Nonfarm Payrolls report could play a major role in shaping expectations for the Fed's October meeting.