Gold heads back towards $3800; Dollar strength may cap

Gold prices hovered close to $3800 an ounce in mid-Asia trade on Thursday, consolidating after setting a record high of $3824 earlier in the week. The yellow metal came under pressure from a stronger US dollar and profit taking, with the dollar index steady near 97.5 as traders awaited key US labor and inflation data. Weekly jobless claims and Friday?s PCE price index are likely to shape expectations for the Federal Reserve?s next move, while fears of a possible government shutdown added to the uncertainty. On the MCX, December bullion futures traded 0.4% higher at ₹114207 per 10 grams, reflecting firm domestic sentiment. Market focus now shifts to Fed officials? speeches later today and the PCE inflation report tomorrow, both critical for gauging the near-term path of US monetary policy.

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