Gold prices are sliding as stalled talks between the U.S. and Iran and the Fed's hawkish outlook weigh on prices.
Gold is losing ground to around 4.535$ during the early Asian session on Monday. Iran stated that no nuclear commitments have been made while talks with the U.S. continue. The Fed's hawkish signals could put further pressure on gold prices.
Gold (XAU/USD) is dropping close to $4.535, breaking a two-day winning streak during the early Asian session on Monday. The precious metal is losing traction amid a lack of progress in peace negotiations between the U.S. and Iran. Traders will be keeping a close eye on developments in the Middle East, as tensions in the region persist.
Reuters reported on Sunday that Iranian officials said talks with the U.S. are ongoing, but no nuclear commitments have been made. Meanwhile, Iran's parliament speaker and chief negotiator, Mohammad Bagher Ghalibaf, stated that Tehran will not accept any deal with Washington unless it guarantees "the rights of the Iranian people."
As diplomatic exchanges continued, Israel ramped up its ground attack in Lebanon, breaking a fragile truce with its northern neighbor. Federal Reserve officials kept signaling on Friday that the central bank may need to raise interest rates in the future if the Middle East war leads to persistently high inflation. It's worth noting that gold is often sought during geopolitical uncertainty, but it doesn't yield interest, making it less attractive when interest rates are high.
Traders are anticipating the U.S. employment data for May on Friday to gain fresh momentum. This report could provide some clues on whether the U.S. economy is strong enough to push the Fed to hike interest rates for next year.
Gold is losing ground to around 4.535$ during the early Asian session on Monday. Iran stated that no nuclear commitments have been made while talks with the U.S. continue. The Fed's hawkish signals could put further pressure on gold prices.
Gold (XAU/USD) is dropping close to $4.535, breaking a two-day winning streak during the early Asian session on Monday. The precious metal is losing traction amid a lack of progress in peace negotiations between the U.S. and Iran. Traders will be keeping a close eye on developments in the Middle East, as tensions in the region persist.
Reuters reported on Sunday that Iranian officials said talks with the U.S. are ongoing, but no nuclear commitments have been made. Meanwhile, Iran's parliament speaker and chief negotiator, Mohammad Bagher Ghalibaf, stated that Tehran will not accept any deal with Washington unless it guarantees "the rights of the Iranian people."
As diplomatic exchanges continued, Israel ramped up its ground attack in Lebanon, breaking a fragile truce with its northern neighbor. Federal Reserve officials kept signaling on Friday that the central bank may need to raise interest rates in the future if the Middle East war leads to persistently high inflation. It's worth noting that gold is often sought during geopolitical uncertainty, but it doesn't yield interest, making it less attractive when interest rates are high.
Traders are anticipating the U.S. employment data for May on Friday to gain fresh momentum. This report could provide some clues on whether the U.S. economy is strong enough to push the Fed to hike interest rates for next year.