XAU/USD drops over 1.6% as US military action in Iran spurs demand for the safe-haven US Dollar.
Gold prices fell more than 1.6% to below $4,500 as the US Dollar strengthened following US strikes in southern Iran. XAU/USD reached a daily high of $4,580 before retreating amid heightened geopolitical tensions.
The US Dollar Index (DXY) rose 0.17% to 99.17, reflecting investor flight to safety. US equities pared gains as risk sentiment soured, while oil prices declined, with WTI crude dropping 2.75% to $94.34 per barrel.
US Treasury yields also slipped, with the two-year note falling nearly four basis points to 4.074%. Markets priced in a 58% chance of a Federal Reserve rate hike by year-end, while a June hold was nearly fully priced in.