Gold Price Faces Selling Pressure Amid Hawkish Fed Bets and Rising Oil Prices

Gold (XAU/USD) remains under pressure below the $4,700 level during the European session on Monday, struggling to build on its rebound from a three-day low. A stronger US Dollar continues to weigh on Gold as investors move toward safe-haven USD demand amid rising geopolitical uncertainty and expectations that the US Federal Reserve could keep interest rates higher for longer.

Hopes for a US-Iran peace agreement faded after renewed tensions in the Strait of Hormuz. Both US President Donald Trump and Iran rejected each other’s latest proposals to end the conflict. According to reports, Iran refused US demands to dismantle its nuclear facilities and halt uranium enrichment for the next 20 years. Trump later described Iran’s response as “totally unacceptable.” The renewed geopolitical risks pushed Crude Oil prices higher again, increasing inflation concerns and adding further pressure on Gold.

At the same time, strong US economic data strengthened expectations for a hawkish Fed. The latest Nonfarm Payrolls report showed the US economy added 115K jobs in April, beating market expectations, while the unemployment rate stayed at 4.3%. Market participants now see a smaller chance of Fed rate cuts this year, with traders pricing in over a 20% probability of at least one 25 basis point rate hike before year-end. Higher interest rate expectations continue supporting the USD and reducing demand for non-yielding assets like Gold.

However, traders remain cautious ahead of key US inflation data this week, including the Consumer Price Index (CPI) and Producer Price Index (PPI). Investors will also watch US Retail Sales data and speeches from Federal Open Market Committee (FOMC) officials for further clues on Fed policy direction. Despite current weakness, the lack of strong follow-through selling suggests traders are still waiting for confirmation before calling an end to Gold’s rebound from last week’s low near the $4,500 psychological area.

XAUTUSDT on the 4-hour chart is showing weakening momentum after facing rejection near the 4780–4800 resistance zone. Price is currently trading around 4660 as bullish momentum fades.

The market remains range-bound for now. A break below 4600 could open the door toward the 4530–4500 support area. On the upside, holding above 4600 may allow another recovery toward 4720 and 4800 resistance.

Key resistance levels: • 4720 • 4760 • 4800

Key support levels: • 4600 • 4530 • 4500

Overall, the trend remains sideways unless price breaks decisively above 4800 or below 4500.

#GateSquareMayTradingShare

$XAUT ‌