Gold Is Back Near $4,200. Is the Sell-Off Over?

Gold bulls are fighting back.

After plunging toward $4,100 earlier this week, gold has staged a sharp rebound and is now pushing back toward $4,200. Falling U.S. Treasury yields and a softer dollar are giving the metal some much-needed fuel.

But here's the catch: a rebound is not the same as a reversal.

Gold's latest recovery comes after one of its sharpest pullbacks in recent months. With yields easing and the dollar retreating from a two-month high, the pressure on non-yielding gold has temporarily faded.

PCE Could Decide the Next Move

The next test comes with today's U.S. PCE inflation data.

A softer-than-expected reading could pull yields and the dollar lower again, giving gold room to push above $4,200 and extend its recovery.

A hotter number could have the opposite effect, reviving rate-hike expectations and putting pressure back on gold.

Gold has made it back to $4,200. Now the question is whether buyers can keep the momentum going — or whether this is simply a rebound before the next battle.