FX.co ★ XAU/USD, GOLD

XAU/USD Gold finds it difficult to build on little advances throughout the Asian session to reach a three-week high. The USD is supported by tensions with Iran and hawkish Fed bets, which put pressure on the commodities. To determine a clear direction, traders now consider US inflation data. As traders anxiously anticipate the release of the US consumer inflation data, gold (XAU/USD) is currently trading around $4,700, maintaining its offered tone down during the early European session on Tuesday. Meanwhile, the US dollar's (USD) reserve currency status is enhanced, and prospects for a US-Iran peace agreement are dampened by the unfavourable headlines surrounding the Middle East situation. Additionally, a diplomatic defeat continues to fuel inflationary concerns and bets for more hawkish central banks, such as the US Federal Reserve (Fed), by supporting high crude oil prices. In addition to giving the USD an extra boost, this helps explain the non-yielding yellow metal's intraday decline from a three-week high. In fact, amid disputes over Tehran's nuclear program and a standoff over the vital Strait of Hormuz, US President Trump rejected Iran's offer to halt a confrontation that has been going on for more than two months. Additionally, according to CNN, Trump has become irritated with the Iranians' handling of peace talks as well as the ongoing shutdown of the vital waterway. Furthermore, according to some Trump associates, he is now taking the possibility of resuming significant military operations more seriously than he has in recent weeks. This raises concerns about a new conflict escalation and strengthens the USD, which puts some pressure on the price of gold.