Gold Stuck Below $4,200 as Strong Dollar and Yields Dominate

Gold (XAU/USD) continued to struggle at the $4,200 level as the European session approached on Thursday. Despite a small pullback during Asian trading, buyers were unable to generate decisive follow-through.

The metal's upside was constrained by a stronger US Dollar, which advanced to a new peak since July 28. Elevated US bond yields also weighed on non-yielding assets like gold, limiting the appeal of bullion.

US core PCE inflation came in at 3% year-on-year in August, undershooting expectations and offering limited support to gold prices. However, Societe Generale's Jan Groen noted that while the latest US inflation signals were mixed for policymakers, underlying price pressures remained a concern.