FX.co ★ AB2 | XAU/USD, GOLD

XAU/USD As concerns about a Fed rate rise and inflation are rekindled by fresh Middle East tensions, gold is headed for a weekly decline.The US CPI statistics next week will provide markets with new information on the Fed's monetary policy direction.Technically, XAU/USD is still trading below the 50-, 100-, and 200-day SMAs, maintaining a bearish structure.As fresh conflicts in the Middle East have rekindled concerns about energy-driven inflation and Federal Reserve (Fed) interest rate rises, gold (XAU/USD) is trading on the back foot on Friday, trying to build on the gains of the previous day and headed for a weekly loss.As of this writing, XAU/USD is down 0.45% for the day, trading at about $4,104.However, there is little follow-through selling of the metal as traders reevaluate US-Iran tensions in light of news that technical negotiations are still ongoing despite the military confrontations, which has caused crude oil prices to decline. US President Donald Trump stated in a post on Truth Social that Washington had told Tehran that the truce was "over" and that Iran had requested to resume negotiations, to which the US had agreed.Gold has recovered somewhat from $3,941, which was its lowest point since November 2025, but it is still unable to draw significant purchasing activity.Gold has acted more like a rate-sensitive instrument and less like a classic safe-haven asset since the US-Iran war started in February. The hawkish repricing of Fed interest rates has been a major factor in price behavior.