Gold falls as USD strengthens on Iran tensions
Gold prices have retreated from a three-week high as the US Dollar gains support from escalating Iran tensions and expectations of a hawkish US Federal Reserve.
The US Dollar’s reserve currency status is benefiting from the negative headlines surrounding the Middle East crisis, fueling inflationary concerns and bets for more hawkish central banks.
This has contributed to a modest USD uptick, capping the non-yielding gold price, with traders pricing in around a 25% chance that the US central bank will hike interest rates by the end of this year, supporting the USD and exerting downward pressure on gold, which is trading near $1,773, below the $1,778 resistance level, after touching $1,774, and above the $1,773 support level, near $4,773, below $4,774, in XAU/USD