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Gold stays below $4,400 as a firmer dollar weighs on prices

FXStreet links the move to higher oil driven inflation fears, a US Fed rate hike outlook for 2026, and safe haven demand for the US dollar amid US Iran tensions.

Reported · Written up by our desk · Major Pairs

Gold prices in the XAU/USD market remained capped, trading modestly lower and staying below the $4,400 level heading into the European session, according to FXStreet.

FXStreet cited a firmer US dollar after an overnight bounce from a two month low, driven by inflation risks tied to higher oil prices and expectations of at least one Federal Reserve interest rate hike in 2026.

The outlet also pointed to geopolitical risk around the US Iran standoff and the Strait of Hormuz, along with Houthi escalation against targets in Saudi Arabia, which it said could disrupt shipping through key waterways and keep crude elevated.

With energy prices at a two week high and investors concerned about renewed inflation pressures, FXStreet noted that hawkish Fed expectations and elevated US Treasury yields are weighing on non yielding gold, while CME Group's FedWatch Tool shows traders pricing roughly a 64% chance of no rate change at the September 2026 meeting.

Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%

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