XAU/USD extends losses for a fourth session amid renewed inflation concerns and shifting Fed policy expectations.
Gold prices (XAU/USD) fell for the fourth consecutive day, trading close to a one-week low near $4,020. Escalating US-Iran tensions revived inflation fears, bolstering bets on a potential Federal Reserve rate hike in 2026, which weighed on the non-yielding asset.
The June FOMC minutes revealed divided policymaker views on rate direction, with many expecting rates to remain within or slightly below the current range by year-end. However, officials noted persistent inflation risks, suggesting further tightening may be needed to meet the 2% target. Markets still price a 70% chance of a September rate increase.
A softer US Dollar provided limited support for gold, as the absence of a hawkish FOMC shift capped USD gains. Despite this, geopolitical risks and Fed policy uncertainty kept investors cautious.