Gold Rebounds Above $4,300 Amid Inflation Concerns

Gold prices have regained ground above $4,300 after facing pressure earlier last week. The recovery is attributed to renewed demand for gold as a safe-haven asset during periods of economic and geopolitical unrest.

The August US headline CPI rose 0.4% month-on-month, reinforcing concerns over persistent inflation pressures. This has increased expectations that the Federal Reserve could maintain a more hawkish policy stance, which may lead to higher interest rates and Treasury yields.

Higher interest rates can put pressure on gold as it does not generate interest income. However, XAUUSD has managed to recover above $4,300, indicating that markets are considering gold's role in times of uncertainty.