XAU/USD stabilizes around $4,390 after hitting $4,435 as geopolitical risks and Fed rate hike bets resurface amid rising crude costs.
Gold (XAU/USD) retreated slightly from a two-month high of $4,435 to trade near $4,390 as escalating US-Iran tensions kept oil prices elevated. Iran’s demand for war reparations and sanctions relief before reopening the Strait of Hormuz countered US calls for compensation over past attacks.
West Texas Intermediate (WTI) climbed to $81.30, up over 6% this week, reigniting inflation concerns. Markets now price a 51.9% chance of a Fed rate hike in September, reversing earlier dovish bets after July’s weaker-than-expected Nonfarm Payrolls report.
Geopolitical uncertainty and hawkish Fed expectations continue to support gold, though the modest pullback reflects profit-taking after recent gains.