Gold Price Forecast: XAU/USD Falls Below $4,200, Eyes $4,100 Ahead of US CPI
Gold extends its decline to a second day, dropping to three-month lows below $4,200 as traders focus on the upcoming US CPI data and escalating US-Iran tensions.
Gold (XAU/USD) continued its sharp sell-off on Wednesday, marking a second consecutive day of losses. The precious metal hit fresh three-month lows, trading below $4,200, as market participants turned their attention to the US Consumer Price Index (CPI) report due later in the session.
Despite heightened geopolitical risks from escalating US-Iran tensions—which typically support safe-haven assets—gold remains under intense selling pressure. Analysts suggest the metal could test the $4,100 level if the downtrend persists. The upcoming CPI data will be crucial for gauging the Federal Reserve's next policy moves, which in turn influence gold's appeal.
Source: FXStreet Forex News