XAU/USD falls to $4,115 amid a resurgent USD driven by expectations of prolonged Fed rate hikes.
Gold prices extended losses on Tuesday, dropping to a nearly two-week low near $4,115 as the US Dollar strengthened. The move follows the Federal Reserve’s hawkish stance, which has bolstered the USD to its highest level since May 2025, pressuring non-yielding assets like gold.
Market sentiment remains cautious despite progress in US-Iran negotiations, which included a temporary lift on Iranian oil sanctions. Conflicting statements from US and Iranian officials have limited optimism, leaving traders focused on monetary policy expectations.
The USD’s rally continues to weigh on XAU/USD, with investors pricing in further Fed tightening. Gold’s decline reflects broader risk sentiment as markets assess the central bank’s next moves.