XAU/USD rises 0.5% amid cooling inflation expectations after US-Iran negotiations push WTI crude down 2.4% to $73.67.
Gold prices edged up 0.5% to $4,179 as US-Iran talks eased geopolitical tensions, dragging oil prices lower and reducing inflation concerns. The XAU/USD pair rebounded from a daily low of $4,136, supported by a 2.4% drop in WTI crude to $73.67.
Investors remain cautious as US equities fluctuate, with Fed policy expectations dominating sentiment. Markets have priced in a near 90% chance of a December rate hike, while some banks forecast a September increase. Lower oil prices could further ease inflationary pressures, benefiting non-yielding assets like gold.
Negotiations between Washington and Tehran provided a temporary reprieve, though tensions persist in the Middle East. The Fed’s hawkish stance continues to influence trading, with no major US economic data releases guiding sentiment today.