XAU/USD falls toward $4,500 as a firmer dollar and hawkish Fed expectations offset geopolitical risks.
Gold prices retreated early Monday, extending Friday’s pullback from near $4,600 as a stronger US dollar and hawkish Federal Reserve expectations pressured the metal. XAU/USD dipped toward the $4,500 level during European trading, erasing gains from a two-week high.
The dollar’s rebound followed rising Fed rate-hike bets and persistent geopolitical tensions, though progress in US-Iran talks may limit further downside. Earlier, Iran’s foreign minister confirmed ongoing negotiations but warned against overinterpreting unconfirmed reports. Differences over nuclear programs and the Strait of Hormuz remain key sticking points.
Traders are awaiting clearer signals on diplomatic progress before committing to larger positions, capping gold’s losses for now.