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fxJul 6, 2026, 9:45 AM

Gold Price Falls as Middle East Tensions Boost US Dollar Demand

Gold (XAUUSD) declined as a stronger US Dollar, fueled by heightened geopolitical uncertainty in the Middle East, weighed on the precious metal.

XAUUSD

Gold (XAUUSD) prices retreated on Thursday as renewed safe-haven flows into the US Dollar outweighed gold's own避险 appeal. The Dollar strengthened amid escalating tensions in the Middle East, creating headwinds for the yellow metal.

Market participants are closely watching diplomatic developments in the region. A sustained Dollar rally could keep gold under pressure in the near term, though any de-escalation might shift sentiment back toward precious metals.

Source: FXStreet Forex News