XAU/USD Rises on Geopolitical Tensions as Iran Deal Hopes Fuel Volatility

XAU/USD has pushed higher as gold prices rally amid heightened geopolitical uncertainty surrounding U.S.-Iran diplomatic developments. Markets are displaying elevated volatility as traders weigh the prospects of a potential nuclear deal against ongoing tensions between Washington and Tehran. The shifting diplomatic landscape has triggered safe-haven demand, lifting gold while pressuring the U.S. dollar. Risk sentiment remains fragile as investors assess the broader implications for energy markets and global trade flows, with USD pairs showing sensitivity to headline-driven moves. Meanwhile, SoftBank's announcement of a massive AI investment project has added a risk-on undercurrent, creating mixed signals across asset classes. The dollar index faces near-term resistance as geopolitical risk premiums build, potentially benefiting traditional safe havens like the Japanese yen and Swiss franc alongside gold. Traders should monitor developments in Iran negotiations closely, as a breakthrough deal could rapidly reverse safe-haven flows and strengthen the USD, while a collapse in talks may accelerate dollar weakness against JPY and CHF.