Gold price in Asian trading is around 1,920 per troy ounce, despite a weakening US dollar and attempts to maintain its weekly close position.

Currently, the US Dollar Index is trading at 104.80, just a little below its April high. However, US Treasury yields increased and reached 4.29%, which may have an impact on the price of the dollar.

The strong US dollar is expected to persist due to positive economic data, including a lower reading of 216K in US Initial Jobless Claims for the week ending September 2, compared to both market consensus and revised readings.

China’s Consumer Price Index (CPI) for August showed a 0.1% gain year over year, which is an improvement from the -0.3% reading from the previous month. This mild result, however, points to ongoing disinflationary pressures that could have an impact on gold prices.

Market players will gain insight into China’s economic situation, focusing on policymakers’ challenges in implementing monetary and fiscal measures to achieve 5% GDP growth this year.

The US Federal Reserve is anticipated to keep interest rates high for a protracted length of time and may raise them by 25 basis points by 2023, which could put major downward pressure on gold prices.

Investors are anticipating additional clues from the US Consumer Price Index (CPI) for August, which is set to be released on Wednesday.

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