Dollar rebound limits XAU gains despite reduced Fed tightening expectations and easing inflation concerns.
Gold prices hold above $4,050 in Asian trading as receding US inflation fears curb bets on aggressive Federal Reserve rate hikes. The non-yielding metal benefits from a softer USD outlook but struggles to breach $4,100 amid a modest dollar recovery from multi-week lows.
OPEC+’s decision to boost oil output in September triggered a sharp drop in crude prices, easing inflation pressures. Diplomatic progress between the US and Iran further dampened geopolitical risks, tempering demand for safe-haven assets. Traders remain cautious, awaiting further Middle East developments before committing to fresh positions.
Market focus stays on incoming geopolitical headlines, which could drive volatility in currency and commodity markets.