Gold Flat, Fed and Iran Weigh
Gold prices moved flat above US$4,100 per troy ounce on Friday (July 10th). XAU/USD briefly reversed a slight decline in the Asian session from the US$4,109–US$4,108 range, but has yet to show strong bullish momentum. This movement reflects market caution amidst mixed signals.
On the positive side, gold received support from a weaker US dollar. The dollar index continued its decline for the third consecutive day after the FOMC meeting minutes were deemed not particularly hawkish. A weaker dollar typically makes gold more attractive to holders of other currencies, which can help cushion pressure on precious metal prices.
However, gold's room for strengthening remains limited as expectations of a Fed rate hike have not completely dissipated. The June 16–17 FOMC minutes showed that US central bank officials remained divided on the direction of interest rates. Some officials believe policy tightening may still be necessary as inflation risks remain high.
The market is also still pricing in a strong chance that the Fed will raise interest rates at least once by the end of 2026. This situation weighs on gold because high interest rates typically reduce the appeal of non-yielding precious metals. Therefore, despite the weakening dollar, investors are hesitant to push gold higher aggressively.
From a geopolitical perspective, tensions between the US and Iran are once again a major concern. CENTCOM reported that the US had attacked dozens of Iranian military targets, including air defense systems, missile sites, and naval logistics infrastructure. Iran then retaliated with missile and drone attacks on US military installations in Bahrain and Kuwait, warning that additional US attacks could trigger a broader regional response.
However, market anxiety eased slightly after US President Donald Trump said Iran had contacted Washington to reach a deal. A White House official also signaled that the US remains committed to the memorandum of understanding with Iran. These conflicting signals have kept gold moving cautiously, and XAU/USD remains at risk of weekly losses if there is no strong buying action capable of confirming a short-term price bottom. (asd)*
Source: Newsmaker.id
