Gold ticked higher in European morning trade as markets focused on US Treasury yields and the dollar, while fiscal and political turbulence in the euro area bolstered safe-haven demand. ING said European fiscal worries have driven some flows into gold, but elevated US yields, persistent inflation risks and a firmer dollar may constrain gains. Recent US inflation and economic releases have reduced expectations of another Fed hike; CME FedWatch shows the market pricing a 22% chance of an Oct rate

Gold ticked higher in European morning trade as markets focused on US Treasury yields and the dollar, while fiscal and political turbulence in the euro area bolstered safe-haven demand. ING said European fiscal worries have driven some flows into gold, but elevated US yields, persistent inflation risks and a firmer dollar may constrain gains. Recent US inflation and economic releases have reduced expectations of another Fed hike; CME FedWatch shows the market pricing a 22% chance of an Oct rate increase, easing a key headwind for bullion.