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fxJul 21, 2026, 3:47 AM

Gold Rises Cautiously as Fed Hike Bets and US-Iran Tensions Limit Gains

Gold (XAU/USD) edged higher in Asian trade following volatile swings, but remains below $4,050 as Fed rate hike expectations, geopolitical tensions, and a strong USD cap further upside.

XAUUSD

Gold (XAU/USD) regained positive traction during the Asian session after two-way price moves in the prior session. However, the precious metal struggles to build on the advance and trades below the $4,050 level.

Bullish factors include expectations of further Federal Reserve interest rate hikes and escalating US-Iran tensions, which typically boost safe-haven demand. Yet a strengthening US dollar is also capping gains, creating a cautious trading environment.

Source: FXStreet Forex News