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Gold pushes toward $4,300 as traders await US NFP data

Gold is attempting to extend gains beyond $4,300, while Fed-hike expectations remain elevated and geopolitical risk around the US-Iran situation keeps safe-haven demand in focus.

Reported · Written up by our desk · Precious Metals

Gold prices firmed in early European trading, with XAU/USD testing a fresh daily high as traders looked to build on momentum beyond the $4,300 level, according to FXStreet.

The outlook is being shaped by mixed signals tied to the US-Iran peace track and rising regional tension risks. FXStreet said these concerns are contributing to a geopolitical risk premium that tends to support the US dollar, a factor that can also cap upside for non-yielding gold.

Adding to the backdrop, FXStreet noted reports that Iran is reviewing a framework tied to managing the Strait of Hormuz, which would bar passage for certain US, Israeli, and hostile vessels until compensation is paid. The same report also pointed to regional attacks raising energy supply disruption concerns, which can feed inflation fears.

Traders are also focusing on upcoming US monthly employment data, with FXStreet citing CME Group’s FedWatch Tool showing traders are still pricing an over 80 percent chance of a Fed rate increase by year end. FXStreet said this keeps attention on the Nonfarm Payrolls release as a key driver for expectations about the Fed’s policy path and, in turn, for USD demand and gold direction.

Latest closeGold $4,292.00 ▲1.1%

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