Gold Prices Stall Below $4,250 Ahead of US NFP Report
Gold prices have stabilized below $4,250 as traders await the release of the US Nonfarm Payrolls (NFP) report. The precious metal's recent rally has stalled due to persistent geopolitical uncertainties and the strengthening US Dollar.
The Saudi Arabia-Iraq conflict and Iranian state news reports on a framework agreement over the management of the Strait of Hormuz have dampened hopes for a diplomatic resolution, supporting the safe-haven US Dollar.
The CME Group's FedWatch Tool shows that traders are pricing in an 80% chance of a US Federal Reserve rate hike by the end of this year, favoring USD bulls and warranting caution before positioning for a resumption of gold's recent move up.