Gold Weakens on US-Iran De-escalation and Fed Tightening Bets
Gold fell to around $4,050 on Monday, down 0.96%, as investors reduced safe-haven exposure amid easing US-Iran tensions and expectations of further Federal Reserve tightening.
Gold (XAU/USD) traded near $4,050 at the time of writing on Monday, declining 0.96% on the day. The precious metal came under pressure as geopolitical risks subsided following a de-escalation in US-Iran tensions.
Additionally, growing expectations that the Federal Reserve will continue its tightening cycle weighed on the non-yielding asset. Investors slightly reduced their safe-haven exposure, shifting focus to interest-rate-sensitive assets.
The move reflects a broader reassessment of the macro outlook, with a combination of reduced geopolitical uncertainty and hawkish Fed rhetoric dampening demand for gold.
Source: FXStreet Forex News