Gold Struggles Below $4,500 as Fed Hike Expectations and Geopolitical Risks Rise

Gold remains under pressure below the $4,500 level as rising geopolitical tensions and growing expectations for tighter central bank policy continue to support the U.S. dollar and Treasury yields. Ongoing conflict between the U.S. and Iran, along with disruptions around the Strait of Hormuz, are keeping inflation concerns elevated and reinforcing expectations that major central banks may maintain a more hawkish stance.

Markets are now increasingly pricing in the possibility of another Federal Reserve rate hike later this year, which is adding further pressure on non-yielding assets like gold.

Technically, gold maintains a bearish short-term outlook after failing near the $4,580 resistance zone, with momentum indicators still pointing lower. Price is trading near the $4,450 support area, and a break of this support could trigger a deeper corrective decline, while buyers would need to reclaim $4,580 to improve the outlook.

XAU/USD Daily Chart