Commodities
Home›Commodities›Precious Metals›Gold slips as oil falls on US-Iran strike pause and Fe…
Gold slips as oil falls on US-Iran strike pause and Fed hawkish bets
Gold (XAU/USD) eased to around $4,036 after an intraday high near $4,084, while CME FedWatch points to a 65% chance of a September rate hike.
Gold trimmed gains in early trading as conflicting US and Iran headlines reduced conviction in a bullish start, with XAU/USD around $4,036 after rising to about $4,084 earlier in the session, according to FXStreet.
US President Donald Trump said over the weekend that he had called off a planned strike on Iran, with negotiations expected to begin Monday. The update boosted hopes for a peace deal, sending oil sharply lower, with West Texas Intermediate down more than 8% at the time of writing, which helped ease immediate inflation worries.
FXStreet said the oil pullback can support gold by lowering Treasury yields, but supply disruption risks through the Strait of Hormuz keep crude above pre-war levels. The Iranian foreign ministry also said Tehran is not holding talks with Washington, leaving traders skeptical and keeping broader inflation concerns in focus.
With traders still expecting a high likelihood of Fed rate increases this year, hawkish guidance continued to weigh on gold. FXStreet cited New York Fed President John Williams saying policy is positioned to reach 2% inflation, and listed an upcoming schedule of key US labor and growth indicators, including ISM Manufacturing PMI, JOLTS, ADP, and Friday's nonfarm payrolls.
Latest closeGold $4,098.60 ▼0.0%|WTI crude $86.80 ▲3.8%