XAU/USD holds at $4,540 as traders monitor stalled US-Iran talks and Fed officials signal potential rate hikes if inflation persists.
Gold (XAU/USD) remains flat around $4,540 in early Asian trading Thursday, as investors assess geopolitical risks tied to US-Iran negotiations and threats to the Strait of Hormuz. US President Donald Trump indicated progress toward a deal but warned of renewed attacks if Iran rejects terms, keeping markets cautious.
The Federal Reserve’s April meeting minutes revealed growing concern among officials about persistent inflation, with most signaling potential rate hikes if price pressures endure. The FOMC held rates steady at 3.5%-3.75% last month, but inflation fears linked to the Iran conflict have intensified scrutiny on monetary policy.
Later Thursday, the US May PMI preliminary reading may offer further cues on economic activity, though gold’s near-term outlook hinges on geopolitical developments and Fed policy signals.