Gold Extends Losses as Strong USD and Fed Fears Pressure Bulls

Gold (XAU/USD) slipped to its lowest level since March 30 after briefly rising above the $4,500 zone during Wednesday’s Asian session. A stronger US Dollar and rising expectations of tighter Federal Reserve policy continue to weigh heavily on the precious metal.

Markets remain cautious over the uncertain US-Iran situation. US President Donald Trump warned that Washington could still strike Iran if negotiations fail, although Vice President JD Vance said both sides have made progress and want to avoid renewed conflict. Despite the diplomatic talks, investors remain skeptical about a lasting agreement due to ongoing disputes surrounding Iran’s nuclear program and the Strait of Hormuz.

This geopolitical uncertainty has helped support the US Dollar near a six-week high, reducing demand for Gold as a safe-haven asset. At the same time, elevated Crude Oil prices continue fueling inflation concerns, increasing expectations that the Federal Reserve may keep interest rates higher for longer.

According to CME FedWatch projections, traders are now pricing in stronger odds of a potential Fed rate hike in 2026. Rising US Treasury yields have further strengthened the Dollar, creating additional pressure on non-yielding assets like Gold.

Investors are now focused on the upcoming FOMC Minutes for fresh clues on the Fed’s policy outlook. However, the broader market backdrop still favors the USD bulls, suggesting Gold could remain under pressure unless buyers regain key resistance levels.

XAU/USDT 4H Outlook

Gold remains bearish on the 4H timeframe after failing to sustain above the 4,550 resistance zone.

Current price action is hovering near the 4,490 support area, while momentum indicators continue signaling weakness. Sellers remain firmly in control below the 4,530–4,550 region.

If bearish momentum continues, the next downside targets are seen around 4,425 and 4,398.

On the upside, buyers need a strong recovery above 4,533 and then 4,620 to shift short-term sentiment back toward bullish territory. Until then, rebounds may continue attracting fresh selling pressure.

The oscillator also remains below the zero line, reinforcing weak momentum and confirming the current bearish market structure.

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