Gold Edges Higher but Rally Limited by Fed Rate Bets, Iran Tensions

Gold prices edged up at the start of the trading week, recovering from a more than one-week low hit in the previous session. The precious metal snapped a three-day losing streak as some dip-buying emerged.

However, the upside appears limited. Markets continue to price in further interest rate hikes by the Federal Reserve, which supports the US dollar and bond yields, weighing on non-yielding gold. At the same time, heightened geopolitical risks stemming from Iran are providing a floor for safe-haven demand, creating a tug-of-war for prices.

Traders remain reluctant to place aggressive bullish bets until clearer directional cues emerge from central bank policy or a resolution to geopolitical uncertainties.