Gold Buyers Hold Back as US-Iran Deadlock and Hawkish Fed Outlook Strengthen Dollar
Gold price rises as XAU/USD gains amid US-Iran tensions. Weak USD and geopolitical risks support gold, while oil surge and Fed outlook may limit gains.
Gold prices face pressure as stalled US-Iran talks and hopes of hawkish Federal Reserve strengthen the US dollar. It reduces the bullion’s appeal amid rising yields and determined global uncertainty.
Earlier this Monday, the gold price (XAU/USD) is rightly touches a fresh daily high during the initial half of the European session. It looks to build on its intraday bounce from the $4,633-$4,632 area, or a four-day low, touched.
The Wall Street Journal reported that regional nations are racing to bring the US and Iran back to the negotiating table within days after talks over the weekend ended without a contract.
It leaves room for regular diplomatic efforts and avoids the US Dollar (USD) from creating intraday gains. It is giving assistance to the commodity. Meanwhile, the wider call is for caution before hoping for any considerable upside in the valuable metal.
US Vice President JD Vance said that he placed a final and finest offer on the table, but Iran declined to accept the terms, leading to a stalemate. Iranian state media said that too many demands sank the deal possibility.
Meanwhile, on Sunday, US President Donald Trump said the US Navy would begin blockading the Strait of Hormuz, jeopardizing a weak two-week ceasefire. Moreover, continued Israeli strikes in Lebanon lift the risk of renewed escalation. Global geopolitical tensions, which could benefit the USD's reserve status of the currency.
This, along with hopes that top central banks will adopt a more Hawkish Fed, bets due to the war-driven surge in energy prices. It might add to capping the upside for the non-yielding Gold.
Moreover, West Texas Intermediate, the standard for US crude oil, has rebounded to around $105 per barrel in the middle of the new geopolitical tensions. It is creating the data on Friday showing that US inflation got higher in March at its quickest pace in nearly four years.
