Gold Rebounds Above $4,300 Amid Persistent Inflation Concerns

Gold prices have recovered above $4,300 after facing selling pressure earlier last week. The rebound is supported by renewed demand for gold as a safe-haven asset during periods of geopolitical and economic unrest.

The August US headline Consumer Price Index (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, potentially leading to higher interest rates and Treasury yields.

Higher interest rates can pressure gold as it does not generate interest income. However, despite these challenges, gold has managed to recover above $4,300, indicating that markets are considering its role as a safe-haven asset.