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Gold slides toward $4,300 as safe-haven dollar gains on Iran risks
Gold extended a pullback from a June 5 peak near $4,450, trading closer to the $4,300 area even after US inflation data pointed to slower price growth.
Gold prices are extending a pullback from the area of $4,450, the highest since June 5, and are drifting lower for a second straight day, FXStreet reported. During the Asian session, the move carried prices to fresh weekly lows closer to the $4,300 mark.
FXStreet linked the weakness to a firmer safe-haven US dollar, supported by persistent geopolitical uncertainty tied to the Middle East. Treasury Secretary Scott Bessent said the US will apply measures toward Iran that have never been seen, while an IRGC adviser said Tehran aims to make any conflict too costly for future US administrations.
At the same time, the article said war-risk concerns remain in focus amid heightened tensions around the Strait of Hormuz, with Iran pledging to keep the strait closed until its demands are met. It also cited escalated attacks on vessels in the Red Sea and Bab el-Mandeb, plus a claim by the Iran-backed Houthis of a drone strike on a Saudi Aramco refinery, all of which can sustain a regional risk premium for the dollar.
On the macro front, FXStreet pointed to recent US inflation readings that signaled cooling pressures, including a July Producer Price Index that was unchanged and a yearly rate that eased from 5.5% in June to 4.7%. The piece added that this reduced expectations for further immediate Fed tightening, but mixed comments from Fed officials have kept traders from making strong new bets on policy moves.
Latest closeGold $4,408.20 ▼0.0%