XAU/USD pares losses as buyers emerge but struggles amid higher-for-longer US interest rate expectations and a stronger dollar.
Gold (XAU/USD) regained ground during Friday’s Asian session, recovering part of Thursday’s decline that pushed it near a monthly low. The modest rebound remains constrained by a hawkish Federal Reserve outlook and a resilient US Dollar (USD).
Crude oil’s 10% weekly surge, driven by escalating US-Iran tensions, has reignited inflation concerns and reinforced expectations for prolonged higher US interest rates. The non-yielding metal typically weakens in such environments.
Geopolitical risks persist as Iran and the US exchanged attacks, targeting civilian infrastructure and energy supply routes. Iran’s threats to disrupt Red Sea oil flows further supported crude prices, adding to inflationary pressures.