FX.co ★ Gold Pulls Back Below $3,400

Gold prices dipped marginally below $3,400 per ounce on Monday, having previously reached a session high of $3,465. This adjustment followed a decline in demand for safe-haven assets amid easing tensions between Israel and Iran. Reports suggested that Tehran's willingness to resume nuclear discussions with the United States indicated a readiness to de-escalate missile exchanges, which had begun four days prior. This development fostered a risk-on market sentiment, as the ongoing conflict has so far spared vital global energy infrastructure. Concurrently, the Federal Reserve is anticipated to keep interest rates steady this week. Additionally, the release of the Summary of Economic Projections will reveal how members of the Federal Open Market Committee are gauging the risks of resurging inflation against a backdrop of a softening labor market during a time of economic ambiguity. Recent economic indicators, notably last week’s subdued inflation figures, have strengthened the expectation that the central bank might consider policy easing as early as September.