Gold declines as renewed US-Iran hostilities boost Oil prices, Fed rate hike bets

Gold (XAU/USD) starts the week under pressure as escalating US-Iran tensions push oil prices higher and revive inflation worries, reinforcing bets that the Fed may hike rates later this year. XAU/USD is down 1.44% around $4,061 after hitting an intraday low of $4,045. The move is driven by a firmer US dollar, higher crude, and expectations for tighter monetary policy, all of which hurt non-yielding gold. Technically, gold remains bearish: it trades below the 20-day Bollinger mid-band near $4,118.50, RSI is around 40, and ADX near 37 signals a strong downtrend. Traders now watch Tuesday’s US CPI release and Fed Chair Kevin Warsh’s testimony for clues on the rate outlook. Key support sits at $4,000, while resistance is seen at $4,118.50, $4,200, $4,288.50, and $4,400.