Gold Price at Crucial Support Amid Iran Tensions and Fed Hike Bets

The gold price (XAU/USD) is at a critical juncture as it tests key support amid renewed geopolitical tensions involving Iran and growing expectations of further Federal Reserve interest rate hikes.

Investors are weighing safe-haven demand against the headwind of higher U.S. yields, which raise the opportunity cost of holding non-yielding bullion.

The precious metal's direction hinges on these opposing forces, with geopolitical risks and Fed policy acting as a tug-of-war for gold.

Renewed concerns about Iran's nuclear program have prompted some safe-haven buying in gold, but this has been largely offset by a hawkish repricing of Fed policy due to resilient U.S. economic data and sticky inflation.