Gold Struggles Amid Inflation-Upsurge Dollar Tension

Gold is caught in a tug-of-war between rising inflation data and a resilient US Dollar Index. The metal's price is consolidating around $4,330, $4,380 per ounce, with deeper support levels identified below $4,260 per ounce.

The strong US Dollar Index, currently holding near 99.6-100, alongside elevated Treasury yields of approximately 4.9% on the 10-year note, is exerting pressure on gold's price.

Despite this, central bank reserve diversification and strong physical/OTC demand are providing a structural support base for gold, with long-term sentiment increasingly treating it as a macroeconomic indicator rather than just an inflation hedge.