XAU/USD stabilizes ahead of US inflation data, with geopolitical risks capping gains despite a softer USD.
Gold prices remain steady around $4,717 after briefly touching $4,748, supported by a weaker US Dollar but constrained by rising Middle East tensions. Persistent US-Iran nuclear disputes and inflation fears keep pressure on central banks to maintain elevated borrowing costs.
The precious metal has struggled for momentum as unresolved diplomatic talks between Washington and Tehran fuel uncertainty. Iran’s demands for war reparations and control over the Strait of Hormuz have stalled negotiations, prolonging geopolitical risks.
Markets await US CPI data, which could influence Federal Reserve policy expectations and further impact gold’s trajectory.