XAU/USD retreats from a three-week high as rising Treasury yields and geopolitical tensions weigh ahead of key US inflation data.
Gold prices reversed earlier gains, trading near $4,694 after peaking at $4,773 during the Asian session. The pullback follows a modest rebound in the US Dollar and fading hopes for a near-term US-Iran deal, which has lifted oil-driven inflation concerns and Treasury yields.
Market focus shifts to today’s US Consumer Price Index report, expected to influence the Federal Reserve’s policy outlook. Analysts anticipate the data could reinforce expectations for prolonged higher interest rates, pressuring non-yielding assets like gold.
Geopolitical risks persist, with US President Donald Trump rejecting Iran’s latest proposal and threatening renewed military action. Tehran has warned of a strong response to any aggression, adding to uncertainty in energy markets.