XAU/USD retreats from recent highs as traders assess geopolitical tensions following paused US airstrikes on Iran.
Gold prices edged lower to near $4,050 in early Asian trading Tuesday, retreating from a recent rally. The decline follows the US decision to pause planned airstrikes against Iran, easing immediate geopolitical risks but leaving uncertainty over ongoing negotiations.
Prior to the pause, gold had climbed on safe-haven demand amid escalating US-Iran tensions. Market consensus had anticipated a continued rally if hostilities persisted, but the temporary de-escalation has tempered bullish momentum.
Traders remain cautious, monitoring developments in US-Iran talks for further direction. The precious metal’s next moves may hinge on whether tensions resume or diplomatic efforts progress.