Gold Prices Recover but Dollar Strength Limits Gains

Gold prices rebounded in European trading on Thursday after stalling the previous day, but gains were limited by continued strength in the US dollar and Treasury yields.

The metal's recovery from an eight-week low was fueled by buying at lower levels, with prices rising 0.85% to $4,192.98 from a low of $4,139.39.

However, Federal Reserve officials' increasingly hawkish comments have reinforced expectations for another US interest rate hike before the end of the year, supporting continued gains in the dollar and Treasury yields.

The 10-year US Treasury yield rose 0.95% to a 24-year high of 5.340%, providing further support for the dollar.