XAU/USD retreats amid stalled US-Iran peace talks and Federal Reserve signals favoring higher rates for longer.
Gold prices fell to $4,155 per ounce in early Asian trading Monday, pressured by renewed US-Iran tensions and hawkish Federal Reserve commentary. President Trump’s threat of strikes on Iran prompted Iranian negotiators to suspend talks, casting doubt on diplomatic progress.
The Fed’s shift toward tighter policy, highlighted by potential nominee Kevin Warsh, has strengthened the USD and limited gold’s appeal. Goldman Sachs revised its year-end gold forecast downward to $4,900 from $5,400, citing delayed US rate cuts.
Market focus remains on geopolitical risks and Fed policy, with gold’s safe-haven demand competing against a stronger dollar.