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Gold falls after Trump says Iran deal is over, dollar rises
XAU/USD dropped more than 1.3% to about $4,059 as the dollar firmed on higher US Treasury yields and renewed Middle East risk.
Gold prices slid on Wednesday, falling more than 1.3% as concerns about renewed conflict in the Middle East strengthened the US dollar, according to FXStreet. XAU/USD was around $4,059 after hitting a four-day low near $4,021.
The stronger dollar was tied to rising US Treasury yields, a headwind for the non-yielding metal. FXStreet also cited expectations for tighter US policy, with swaps markets pricing in 27 basis points of Federal Reserve tightening by the end of the year.
The report linked the reaction in gold to dollar strength that also followed gains in US oil prices. Western Texas Intermediate crude rose more than 3% to about $74.50, with higher energy prices seen as raising inflation risk and supporting bets for higher rates.
In rates pricing, FXStreet said traders expect the Fed to hold at the July meeting, with odds at 65% for no hike versus 35% for a move. Attention is set on the release of the Fed’s last meeting minutes, and the next US data point noted is Initial Jobless Claims for the week ending July 4.
Latest closeGold $4,023.80 ▼1.2%|WTI crude $81.23 ▼1.7%