Gold Remains Under Pressure

Gold slipped toward $4,150 an ounce on Thursday after surrendering gains from the previous session, as elevated oil prices and Treasury yields outweighed support from softer-than-expected US inflation data. The US PCE price index rose 0.3% in August, below the 0.4% forecast, while core PCE increased 0.2%, also falling short of expectations for a 0.3% gain. On an annual basis, headline PCE inflation came in at 3.4%, below the expected 3.7%. Markets now see roughly a 38% chance of a Federal Reserve rate hike in October, down from 51% before the PCE release. Meanwhile, oil prices remain elevated as the US and Iran make little progress in negotiations despite signs of recovering Middle East flows. Treasury yields also climbed to multi-decade highs amid concerns over persistent energy-driven inflation, which could prompt tighter monetary policy.