XAU/USD Outlook: Weak Bounce, Downside Still Likely
Gold (XAU/USD) started the week lower around $4,445, falling over 1%. This drop coincides with rising oil prices, as WTI trades above $102.50. Higher oil pushes inflation expectations up, which could keep interest rates more elevated. Since gold doesn’t yield interest, this pressure tends to weigh on its price.
Tensions in the Middle East add uncertainty. Reports indicate the US might increase its military presence near Iran, while Iran has issued strong warnings. Meanwhile, diplomatic talks seem to be ongoing, creating a mixed picture.
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