Analysts: Gold Prices Face Double Pressure as Fed Rate Hike Expectations Return Amid Unstable US-Iran Ceasefire

1. Analysts point out that the current downward pressure on gold mainly comes from the market repricing the path of Federal Reserve policy. As the market begins to factor in the possibility of the Federal Reserve raising interest rates for a second time as early as the first quarter of next year, expectations of rising real interest rates are weakening gold's appeal.2. Meanwhile, the resurgence of geopolitical risks is also adding uncertainty to gold prices. Analysts believe that, after the latest round of clashes, the fragile basis of the temporary ceasefire agreement between Iran and the US has become unstable, and the situation is likely to return to turmoil. While this uncertainty may to some extent support gold's safe-haven demand, against the backdrop of a tug-of-war between geopolitical risk premiums and interest rate hike expectations, gold prices are likely to remain highly volatile in the short term.