Gold prices dropped sharply Wednesday after President Donald Trump declared the US-Iran ceasefire deal “over” during the NATO Summit in Ankara, Turkey. The hawkish comments triggered an immediate selloff in the safe-haven metal as traders reassessed geopolitical risk premiums. However, Reuters subsequently reported Trump did not repeat these remarks, citing sources familiar with the discussions, adding confusion to market sentiment.
The volatility comes as markets await the Federal Reserve’s FOMC Minutes release, with renewed geopolitical tensions potentially strengthening the case for continued hawkish monetary policy. Traders are recalibrating positions as the dollar strengthens on rate hike expectations, putting additional pressure on non-yielding gold. The mixed messaging from Turkey creates uncertainty for both safe-haven positioning and Fed policy outlook.
FXnCO Insight
Traders should prepare for heightened gold volatility ahead of FOMC Minutes, watching for any dollar strength that could extend XAU/USD downside toward key technical support levels.
Source: FXStreet