XAU/USD stabilizes near $4,050 as Middle East uncertainty and Fed hike expectations support the safe-haven dollar.
Gold prices remain steady above $4,050 in Asian trading as investors weigh escalating US-Iran tensions against Federal Reserve rate hike bets. The US Dollar’s resilience, fueled by geopolitical risks, offsets pressure from recovering crude oil prices, which stoke inflation fears.
Earlier, Iran denied ongoing negotiations with the US, while reports of drone attacks on a US military base in Kuwait heightened regional instability. The Strait of Hormuz dispute further dampens hopes for a diplomatic resolution, reinforcing demand for safe-haven assets.
Market reaction has been muted, with traders awaiting clearer signals on Fed policy and Middle East developments. The non-yielding metal’s upside remains capped by expectations of prolonged higher US interest rates.