XAU/USD falls 1.6% to $4,260 as conflicting Iran deal signals and Fed policy weigh on demand.
Gold prices slid to their lowest level since March, with XAU/USD trading at $4,260, down 1.6% on the day. The decline follows mixed signals on Middle East negotiations and a rebound in the US Dollar, which reduced demand for the non-yielding metal.
Earlier, gold peaked near $4,350 before retreating as US President Donald Trump suggested a deal with Iran was imminent, only to later report an attack on a US helicopter. The US Dollar Index (DXY) recovered to 100.00 after dipping to 99.68, further pressuring gold.
Traders are now focused on Wednesday’s US Consumer Price Index (CPI) report, with inflation trends expected to influence Federal Reserve policy and gold’s trajectory.