XAU/USD falls 0.44% to $4,146 after failing to breach $4,200 amid rising US inflation expectations and geopolitical risks.
Gold prices retreated 0.44% to $4,146 on Tuesday, struggling to sustain momentum above $4,200 as US consumer inflation expectations climbed to their highest level since September 2023. The NY Fed’s Survey of Consumer Expectations showed one-year inflation expectations rising from 3.5% in May to 3.7% in June, fueling concerns over persistent price pressures.
The XAU/USD pair peaked at $4,180 before slipping, pressured by a widening US trade deficit—from $54.6 billion in April to $77.6 billion in May—and reports of renewed hostilities in the Middle East. Attacks on two ships in the Strait of Hormuz by Iran’s Revolutionary Guard raised fears of energy supply disruptions, lifting oil prices and supporting the USD.
Market focus shifts to potential Fed policy responses, as rising inflation expectations may prompt tighter monetary conditions. Gold’s failure to break a downward-sloping resistance trendline near $4,200 suggests near-term consolidation.