XAU/USD dips 0.26% to $4,380 ahead of US CPI data, pressured by rising oil prices and inflation concerns.
Gold (XAU/USD) retreated 0.26% to $4,380 in European trading Tuesday, pulling back from a two-month high of $4,435. The decline follows a surge in oil prices amid escalating tensions over the Strait of Hormuz, a critical chokepoint for global energy supplies.
Brent crude climbed to $87 per barrel as hopes for a near-term resolution to US-Iran negotiations faded. Analysts noted that stalled talks and additional demands for war compensation have heightened geopolitical risks, driving oil higher and stoking inflation expectations.
Markets now await Wednesday’s US Consumer Price Index data for July, which could shape Federal Reserve rate expectations. Higher inflation may reinforce fears of further tightening, weighing on non-yielding assets like gold.