Gold Stalls Amid Mixed US-Iran News and Hawkish Fed

Gold prices remain under pressure despite reaching an intraday high of $4,084 on Monday. The XAU/USD pair currently trades at $4,050, up 0.20% on the day.

The US-Iran headlines over the weekend saw President Donald Trump call off a planned strike on Iran, sending oil prices sharply lower and easing inflation concerns. However, supply disruptions through the Strait of Hormuz continue to keep oil prices above pre-war levels.

New York Fed President John Williams stated that 'rate policy is still well positioned to reach 2% inflation,' adding that 'if inflation is not on track to 2%, the Fed will intervene to restore price stability.' The CME FedWatch Tool shows traders see a 65% chance of a rate hike in September, capping Gold's upside.