Gold prices fell in early Wednesday trading, slipping below the $4,000 mark and trading close to the 2026 low reached during the previous session. The precious metal remains under pressure from a stronger US dollar, supported by uncertainty surrounding the US-Iran negotiations and a more hawkish outlook for the Federal Reserve’s monetary policy. Although the conflict between the US and Iran is currently paused, it remains unresolved, with both sides yet to agree on terms that would deliver a lasting peace. Until then, investors are reluctant to rule out a new closure of the Strait of Hormuz and the resulting impact on global energy prices and inflation. This has contributed to the financial markets pricing in a high probability of at least one Federal Reserve rate hike this year, with the resilience of the US economy reinforcing that view. Tuesday's JOLTS report showed that job openings rose to their highest level in two years, ahead of Thursday's non-farm payrolls report. A stronger-than-expected reading could reinforce expectations of a more hawkish Federal Reserve, boosting the dollar further and creating additional headwinds for gold.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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