Gold Stalls Near $4,100, as Hawkish Fed Outlook Counters Geopolitical Risk

Gold prices are currently trading near $4,100 per ounce. The market remains volatile following a recent intraday sell-off.

Geopolitical tensions between the U.S. and Iran are paradoxically pressuring gold prices. Rising oil costs have fueled inflation fears, overshadowing the metal's traditional safe-haven status.

Inflationary pressure reinforces expectations for a hawkish Federal Reserve policy. A strengthening U.S. dollar and higher interest rates increase the opportunity cost of holding non-yielding bullion.