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Gold prices (XAU/USD) have stalled in their recovery after rebounding from a key support level of $4,367-$4,366, the lowest since March 27, and are trading in a tight range during the Asian session on Friday. The pause comes amid persistent U.S. inflation data, which reinforces expectations of further Federal Reserve rate hikes. Geopolitical tensions in Iran also add uncertainty to the market, though their direct impact on gold remains unclear.
For traders, the lack of a clear breakout in gold highlights the delicate balance between inflation-driven demand for safe-haven assets and the potential for higher interest rates to weaken gold's appeal. The Fed's policy trajectory remains a critical factor, with investors closely monitoring inflation figures and central bank statements. A sustained move above $4,400 could signal renewed bullish momentum, while a breakdown below $4,360 may intensify bearish pressure.
Looking ahead, the focus will shift to upcoming U.S. economic data releases and Fed officials' comments on inflation control. Investors should also watch for developments in Iran, as any escalation could drive short-term volatility in gold. The interplay between macroeconomic fundamentals and geopolitical risks will likely dictate the metal's near-term direction.
