XAU/USD retreats from $4,247 as mixed Iran signals and Fed rate hike bets lift the US Dollar.
Gold prices eased on Thursday, reversing a brief uptick to the $4,246-$4,247 range as demand for the safe-haven USD strengthened. Mixed signals from the US and Iran over a potential peace deal, alongside hawkish Federal Reserve expectations, weighed on the non-yielding metal.
The previous session had seen gold recover from its lowest level since November 2025. However, uncertainty over Iran’s stance—including reports of unresolved issues like Hormuz access and frozen funds—kept geopolitical risks elevated. US President Donald Trump suggested a deal was imminent, but Iran’s leadership denied finalizing any agreement.
Crude oil prices edged higher amid the tensions, stoking inflation concerns. The Fed’s hawkish policy outlook further pressured gold, which offers no yield.