Gold drops as Trump pulls back from Iran strike as hostilities continue
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Gold trades flat near $3,369, on track for a weekly loss of nearly 1.90%. Trump backs off immediate Iran action, boosting risk sentiment and denting safe-haven demand. Fed officials split on rate outlook; Waller eyes July cut, Barkin stays cautious. Gold price trades flat on Friday and is poised to end the week with a nearly 1.90% loss, after US President Donald Trump delayed taking military action against Iran, opting instead for a diplomatic solution. At the time of writing, XAU/USD trades at $3,369, down 0.11%. Sentiment turned sour outside of geopolitical events, related to “US may revoke waivers for allies with semiconductor plants in China,” as Bloomberg reported. Trump’s decision on Iran boosted risk appetite, a headwind for Gold prices. Meanwhile, Israel and Iran continued to exchange blows. Reuters reported that an Iranian senior official stated they’re ready to discuss limitations on uranium enrichment. However, they said “zero enrichment will undoubtedly be rejected by Tehran, especially now, under Israel’s strikes.” In the meantime, Federal Reserve (Fed) officials began to cross the wires after the central bank decided to hold rates unchanged, adopting a slightly hawkish stance. Fed Governor Christopher Waller turned uber dovish, eyeing the first rate cut at the July meeting. In opposition to him, the Fed revealed its Monetary Policy Report, in which it mentioned that policy “is well positioned for what lies ahead,” amid geopolitical and tariff uncertainty. Alongside this, Richmond Fed President Thomas Barkin said he is in no rush to cut rates. Although Gold has dipped this week, it is typically sought during periods of geopolitical tensions and lower interest rates However,the Fed’s restrictive tilt may prompt investors to turn toward other currencies alongside the US Dollar. Next week, the US economic docket will feature Fed speeches, S&P Global Flash PMIs, housing and inflation…
