Gold Steadies Below $4,650 Amid Rate Hike Bets and Geopolitical Uncertainty

Gold prices have steadied below $4,650 after retreating from around $4,700, its highest level since May 14. The precious metal's stability follows a decline in July US inflation data and markets continue to price in roughly a 75% probability of a Federal Reserve rate rise by year-end.

The US Dollar has extended a rebound from a three-month low as geopolitical uncertainty encouraged defensive positioning, prompting profit-taking in bullion. The Treasury Department's expansion of its buyback strategy led to a brief dip in US bond yields, but debt concerns resurfaced with the national total passing $40 trillion.

Attention turns to Wednesday's US PCE Price Index and Fed Chair Kevin Warsh's address at Jackson Hole on Friday, alongside the September 15-16 FOMC meeting. The breakout above the $4,500 area keeps the bias positive for gold, with technical indicators suggesting potential support at $4,294 and resistance at $5,413.22.