XAU/USD falls during Asian trading as investors await Fed policy signals amid easing US-Iran tensions and oil price volatility.
Gold prices retreated below $4,050 in Tuesday’s Asian session after failing to sustain gains above $4,100. The decline follows a pause in US Dollar strength ahead of the Federal Reserve’s two-day policy meeting, which will shape expectations for future rate moves and USD demand.
Traders reduced bets on Fed rate hikes amid renewed US-Iran diplomatic efforts, easing inflation concerns after oil prices slumped overnight. The US halted airstrikes against Iran, while President Trump indicated progress in negotiations, though drone attacks in the Middle East capped optimism.
Market focus remains on the FOMC meeting, with investors seeking clarity on the Fed’s policy path. Geopolitical risks and energy supply disruptions continue to support safe-haven USD demand, limiting gold’s downside.