The dollar climbed to a two-month high, signaling that investors are viewing September's potential rate action not as an isolated adjustment, but as a renewed campaign to curb inflation. This shift in sentiment has effectively neutralized the support gold previously gained from oil price volatility. While crude benchmarks—Brent at $98.16 and WTI at $89.01—have dipped following the restart of Saudi Arabia’s East-West Pipeline, the geopolitical risk premium in the Strait of Hormuz remains a lingering factor for commodity traders.

Upcoming economic indicators, starting with the flash U.S. PMI release at 9:45 a.m. ET, will serve as the next stress test for bullion. Analysts note that any data showing stronger activity will likely reinforce the 'higher-for-longer' interest rate narrative, keeping real yields elevated and putting further pressure on gold. Conversely, softer reports could provide the necessary relief for prices to stabilize above the $4,300 mark. Technically, gold bears are currently eying a break below $4,291.00, while bulls must overcome a resistance zone between $4,334.00 and $4,370.00 to regain momentum.