XAU/USD falls as geopolitical risks fail to lift demand amid a firmer US Dollar and stalled ceasefire talks.
Gold prices retreated early Monday, with XAU/USD trading near $4,500 after peaking at $4,595 on Friday. Stalled US-Iran ceasefire negotiations and reciprocal military strikes in the Middle East kept investors cautious, though demand for the precious metal remained subdued.
Despite heightened tensions, gold is down over 15% since the conflict escalated and nearly 20% below its late-January high of $5,600. The US Dollar’s strength has overshadowed geopolitical risks, making gold less attractive to foreign buyers. Diplomatic efforts continue but face hurdles over Iran’s nuclear program and sanctions relief.
No immediate market reaction was reported, though the firmer USD and persistent geopolitical uncertainty may limit gold’s upside in the near term.