XAU/USD falls to March lows near $4,300 as Middle East tensions and Fed rate hike expectations lift the US Dollar.
Gold (XAU/USD) extended losses Monday, dropping to its lowest level since March 23 after briefly touching $4,355 in Asian trading. The decline follows renewed geopolitical tensions in the Middle East and stronger-than-expected US jobs data, which reinforced expectations for prolonged Federal Reserve hawkishness.
The commodity broke below its 200-day Simple Moving Average (SMA), a key technical level, and now faces further downside risk if it sustains losses below $4,300. Prior to this, gold had struggled to maintain momentum above $4,350 despite periodic safe-haven demand.
Escalating hostilities between Israel and Iran, including reported strikes in Lebanon and Iraq, fueled demand for the US Dollar as a safe-haven asset. Meanwhile, Friday’s Nonfarm Payrolls report, which showed 179K jobs added versus 85K expected, bolstered bets for delayed Fed rate cuts.