Gold edges lower to near $4,150 on US–Iran peace uncertainty, hawkish Fed signals
Gold price (XAU/USD) trades with mild losses around $4,155 during the early Asian session on Monday. Traders continue to assess the developments surrounding the US-Iran peace talks in Switzerland. However, hawkish signals from the US Federal Reserve (Fed) might cap the upside for the precious metals in the near term.
US President Donald Trump over the weekend threatened strikes on Iran if Hezbollah keeps attacking Israel, raising concerns about progress for peace talks between Washington and Tehran. Iranian negotiators suspended high-stakes talks with the US in Switzerland in response to a flurry of verbal threats issued by Trump to strike Iran again, but people familiar said they were continuing.
“Gold’s rally on the back of the U.S.-Iran peace deal proved short-lived. The resurgent dollar, powered by the Fed’s newly hawkish tone under Kevin Warsh, has stolen the spotlight,” said Tim Waterer, chief market analyst at KCM Trade.
Goldman Sachs project gold prices to rise to $4,900 per ounce by December, lower than its earlier forecast of $5,400, as the bank doesn’t expect the US rate cut this year anymore.
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