Gold Holds Steady Above $4,050 as Fed Hike Bets, Iran Uncertainty Buoy USD
Gold prices are little changed above the $4,050 level as traders weigh expectations of further Federal Reserve rate hikes against escalating tensions in the Middle East, which supported demand for the US dollar.
Gold trades near flat during the Asian session on Tuesday, with XAU/USD hovering above the $4,050 mark. The metal has seesawed between minor gains and losses as market participants remain cautious ahead of key developments surrounding Iran.
Expectations that the Federal Reserve will maintain its hawkish stance are lending support to the US dollar, a traditional safe haven. A stronger greenback often caps upside in dollar-denominated gold.
Geopolitical uncertainty linked to Iran is simultaneously providing a floor for bullion, keeping losses contained. The tug-of-war leaves gold in a tight range with no clear near-term direction.
Source: FXStreet Forex News