Gold Seeks Safe Haven Ahead of Pivotal Inflation Data

The price of gold retreated from its recent high of $4,700 as investors await key inflation data from the US. The precious metal has seen increased demand due to the US Treasury's efforts to stabilize the bond market by buying long-dated bonds.

This move has led to lower Treasury yields, making gold more attractive to holders of other currencies. The ongoing tensions between the US and Iran have also contributed to a favorable environment for gold, with military confrontation giving way to economic pressure.

The US dollar remains subdued against its peers, allowing gold's value to appreciate in currency exchange markets. Today's release of US PCE inflation figures will be closely watched by investors, as it is the Fed's preferred measure of inflation.