Gold Retreats as USD Strengthens Despite Middle East Tensions

Gold spot prices have declined 0.8% to $2,325/oz despite escalating Iran tensions, as dollar strength and upcoming Fed signals take precedence. The US Dollar Index has climbed 0.4% to 105.20, pressuring the traditional safe-haven metal. Markets are positioning ahead of this week's US PMI data and Fed officials' speeches, which could provide clarity on the rate cut timeline. EUR/USD has slipped 0.35% to 1.0720, while AUD/USD dropped 0.5% to 0.6640 as risk sentiment deteriorates. Technical indicators show gold facing resistance at $2,350 (50-day MA) with support at $2,300. The unusual inverse correlation between gold and geopolitical risk suggests traders are prioritizing monetary policy expectations over traditional haven flows. Key focus remains on Wednesday's preliminary PMI releases across major economies.