Gold consolidated near $4,600 an ounce as investors weighed the Federal Reserve’s approach to stubborn inflation ahead of the annual Jackson Hole gathering this week. Bullion edged higher after dropping 1.4% in the previous session to snap a five-day winning streak. Wednesday’s decline followed data showing US inflation remained well above the Fed’s target, raising the likelihood of further rate hikes—a headwind for non-yielding bullion.

The dollar jumped the most in two weeks and bond yields climbed after the inflation print. Market participants are closely monitoring central bank signals for clues on monetary policy direction, with gold’s price action reflecting heightened uncertainty over future interest rates and inflation persistence.