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Gold prices remain below their two-week peak of $4,600 as geopolitical tensions in Iran and expectations of a hawkish Federal Reserve (Fed) policy continue to support the US dollar. The yellow metal opened the week on a subdued note, pressured by the stronger USD and limited buying interest amid mixed economic data. Investors are closely monitoring developments in the Middle East, where rising tensions between Iran and the US have sparked concerns over energy security and potential market disruptions.
The Fed's potential rate hike trajectory remains a key focus for markets. A more aggressive stance from the central bank could strengthen the dollar, which typically weighs on gold as a non-yielding asset. Traders are also assessing the impact of higher interest rates on inflation and global economic growth, which could influence demand for safe-haven assets like gold.
Looking ahead, the market will watch the Fed's upcoming policy statements and any shifts in geopolitical risks. A sustained USD rally could push gold further below critical support levels, while easing tensions or dovish Fed signals might provide a short-term bounce. Investors should also monitor oil prices and regional developments in the Gulf for potential spillover effects on gold.
