Gold Falls Toward $4,000 on US-Iran Tensions, Rate Hike Bets
Gold price (XAU/USD) slipped to around $4,000 in early Asian trading on Monday, as heightened US-Iran hostilities boosted expectations of a Federal Reserve rate hike. The precious metal has been hovering near the psychological level after posting a 14% decline in Q2, its worst quarter in recent years.
Gold (XAU/USD) edged lower to the $4,000 mark during early Asian hours on Monday, pressured by renewed geopolitical risk. Escalating US-Iran hostilities have reinforced market bets on further Federal Reserve tightening, weighing on non-yielding assets like gold.
The metal has been consolidating near the psychologically important round number after suffering a 14% drop in the second quarter. That quarterly performance marked gold's worst in recent history, as higher interest rates diminished the appeal of the zero-yield asset.
Source: FXStreet Forex News