Gold Price: XAU/USD tests support at $4,450 as the US Dollar rallies

LONDON (June 3) Gold (XAU/USD) resumed its near-term downtrend on Wednesday, with bears pushing against the intra-week lows at the $4,450 area. Flaring tensions in the Middle East have boosted Oil prices, while solid US data released this week endorsed hopes of Federal Reserve (Fed) rate hikes in 2026, setting the ideal conditions for the US Dollar rally.

The US military has launched new strikes on Iran’s Qeshm Island and Iranian missiles and drones hit the International Airport of Kuwait and targeted US military bases in Gulf countries. These reports increased pressure on an already fragile ceasefire and sent Oil prices higher, boosting demand for the safe-haven US Dollar.

In the macroeconomic front, US data released on Tuesday revealed that job openings increased in April to their highest levels in nearly two years, confirming some stabilisation in the labour market after a weak 2025. Traders will be attentive to the US ADP Employment release and ISM Services Purchasing Managers’ Index (PMI) figures, due later today, although the highlight of the week will be Friday’s Nonfarm Payrolls report, which will be carefully analysed for hints about the Fed's monetary policy path.

FXStreet