Gold Price Stalls Recovery Amid US-Iran Tensions, Ahead of Key Jobs Data

The XAU/USD gold price is attempting to recover from a two-day decline, trading around $4,050 in Asian markets. However, despite renewed tensions between the US and Iran, which has contributed to the Greenback's rebound, buyers lack conviction due to a gradual recovery in the US Dollar.

President Trump's statement that the US is engaged in talks with Iran, warning it was Tehran's 'last chance' to reach a favorable agreement, was swiftly dismissed by Iran. The ISM Manufacturing PMI data showed a jump to 55.6 last month, beating market forecasts.

The Federal Reserve's monetary policy outlook remains uncertain, with recent reports suggesting that Chair Kevin Warsh is considering reducing the number of policy meetings per year. This has kept the USD's haven demand underpinned.

Markets are bracing for a slew of US jobs data due later this week, including the JOLTS Job Openings Survey on Tuesday and Nonfarm Payrolls (NFP) on Friday. The employment reports could provide fresh clues on the Fed's interest rate trajectory amid persisting concerns over elevated inflation.