XAU/USD recovers to $4,345 amid geopolitical tensions but faces pressure from strong US jobs data and Fed rate expectations.
Gold prices rose to around $4,345 in early Asian trading Monday, recovering some losses as Middle East tensions escalated. Iran warned of a crushing response to any Israeli attack, while US officials urged restraint to prevent further escalation.
The rebound follows a stronger-than-expected US jobs report, with Nonfarm Payrolls rising 172K in May, surpassing the 85K forecast. The unemployment rate held steady at 4.3%, reinforcing expectations the Federal Reserve will maintain higher interest rates.
Despite safe-haven demand, gold’s upside may be limited by elevated US yields and inflation concerns tied to geopolitical risks.