XAU/USD gains stall amid mixed US-Iran signals and Fed officials reaffirming higher-for-longer rate expectations.
Gold (XAU/USD) trades at $4,050, up 0.20% after hitting an intraday high of $4,084, as markets parse conflicting US-Iran developments and await US jobs data. The metal benefits from lower Treasury yields and easing oil-driven inflation fears, though supply risks persist in the Strait of Hormuz.
Traders remain cautious as Iranian officials deny ongoing talks with Washington, keeping geopolitical risks elevated. Meanwhile, New York Fed President John Williams reiterated the central bank’s commitment to 2% inflation, signaling potential rate hikes if progress stalls. The CME FedWatch Tool shows a 65% probability of further tightening this year.
Oil prices fell over 7% after President Trump canceled a planned strike, but broader inflation concerns linger, capping gold’s upside. Markets now focus on upcoming employment data for clues on Fed policy.