Market move
Gold weakened below $4,600 during Thursday’s European morning, surrendering the mild recovery recorded earlier in the Asian session. The reversal kept the immediate direction for XAU/USD tilted lower as the US dollar remained firm.
The Dollar Index consolidated above 99.00, providing the main headwind for the precious metal. US inflation was supporting the greenback, reinforcing the opposing moves in dollar-denominated gold and the US currency.
Dollar pressure
The latest price action shows gold struggling to preserve even a limited rebound while the dollar maintains its recent support. With DXY holding above the 99.00 level, buyers were unable to extend the Asian-session recovery into European trading.
The move below $4,600 is the clearest near-term development for XAU/USD. Gold’s retreat does not establish a broader trend from the available information, but it confirms that the earlier recovery had faded by the European morning.
What matters next
For the immediate session, traders will be watching whether gold can return above $4,600 or remains pressured beneath that threshold. The behavior of the Dollar Index around and above 99.00 also remains relevant because dollar firmness has accompanied the pullback in bullion.
No additional inflation figures or policy signals were provided, leaving the market focus on the current relationship between a supported greenback and weaker gold. Until that balance changes, the short-term implication for XAU/USD remains bearish, with the failed Asian recovery highlighting limited upward momentum during Thursday’s trading.
