Gold Nears Three-Month Low at $4,300 Amid Renewed Mideast Tensions and Hawkish Fed
XAU/USD hovers near a three-month low of $4,300 in Asian trade as escalating Middle East hostilities and a hawkish Federal Reserve weigh on the precious metal, with further downside risks remaining.
Gold prices are consolidating near three-month lows around $4,300 in Friday’s Asian session after a sharp sell-off. The yellow metal is under pressure due to renewed escalation in the Middle East, which typically boosts safe-haven demand but has been overshadowed by hawkish signals from the US Federal Reserve.
The combination of geopolitical uncertainty and expectations of higher-for-longer US interest rates is keeping gold on the defensive. Market participants expect more pain for XAU/USD as the dollar strengthens and bond yields remain elevated. No immediate catalysts for recovery have emerged, and the metals consolidate ahead of potential further declines.
Source: FXStreet Forex News