Gold Retreats as Hawkish FOMC Minutes and US-Iran Tensions Boost Dollar

Gold prices have retreated from their highest level in early June as the US dollar strengthens due to hawkish FOMC minutes and ongoing tensions between the US and Iran.

The minutes of the July 28-29 FOMC meeting revealed that Federal Reserve officials plan to raise interest rates unless inflation is brought under control, which has eased some pressure on bond yields.

Investors are also concerned about higher energy prices due to the Middle East crisis, which could rekindle inflationary pressures and lead to at least one Fed rate hike in 2026.

The US-Iran impasse is supporting the safe-haven dollar, making it difficult for gold to gain traction.