Gold Weakens as Iran Deal Uncertainty and Hawkish Fed Support USD

Gold (XAU/USD) came under selling pressure on Thursday following a modest gain in early Asian trading that brought the metal to the $4,246-$4,247 zone. The move reversed the previous day's solid recovery from the lowest level seen since November.

Market participants point to renewed uncertainty over the Iran nuclear deal as a tailwind for the US dollar, alongside expectations of a continued hawkish stance from the Federal Reserve. A stronger dollar tends to weigh on dollar-denominated gold, reducing its appeal as an alternative investment.

The pullback suggests the recent recovery may be running out of steam, with traders now watching for further cues on Fed policy and geopolitical developments.