XAU/USD declines ahead of April US inflation data, with geopolitical tensions and a stronger dollar weighing on prices.
Gold prices fell below $4,700 on Tuesday, retreating from earlier attempts to breach $4,770. The decline comes as investors adopt a cautious stance ahead of the US Consumer Price Index release, which could influence Federal Reserve policy expectations.
Analysts expect April’s CPI to rise to a 3.7% annual rate, the highest since September 2023, driven by energy market disruptions. A higher-than-expected print may reinforce expectations of a hawkish Fed pivot, supporting the US dollar and pressuring non-yielding assets like gold.
Geopolitical risks, including US warnings of a potential collapse in the Iran ceasefire, have also bolstered the dollar. US Treasury yields climbed, further reducing gold’s appeal as an alternative safe-haven asset.