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Gold slips below $4,050 as Fed hike bets boost the US dollar
Gold was pressured by a firmer USD after new US-Iran strike developments lifted crude, raising inflation fears alongside expectations for higher-for-longer US rates.
Gold prices stayed under pressure for a second straight day, slipping further below the $4,050 level during the Asian session, FXStreet reported.
The outlet linked the move to renewed expectations for higher US interest rates, supported by a firmer US dollar. It cited the US Central Command saying it has completed another round of strikes against Iran, as well as escalation that has raised crude supply disruption concerns and pushed oil prices to a fresh high since June 11.
FXStreet also pointed to US macro data that showed jobless claims fell to the lowest level since September 1969, reinforcing views of a resilient labor market and keeping inflation a focus for the Federal Reserve. It added that US President Donald Trump imposed new tariffs of 10% to 12.5% on 60 trading partners covering 99.4% of US imports, which could weigh on risk appetite while supporting the greenback.
The combination of a non-yielding bullion outlook and a stronger dollar has kept XAU/USD vulnerable to further declines, FXStreet said, as investors monitor how oil prices could affect inflation and central bank policy stances.
Latest closeGold $4,051.10 ▼2.3%|WTI crude $92.23 ▲6.2%