Gold declines below $4,500 on stalled US-Iran ceasefire talks, US NFP data looms

• Gold price declines to around $4,470 in Friday’s early Asian session. 

• There was no sign of progress in ceasefire talks between the US and Iran, weighing on the Gold price. 

• Traders brace for the US May employment report, which is due later on Friday. 

Gold price (XAU/USD) edges lower to near $4,470 during the early Asian session on Friday. The precious metal remains volatile amid ongoing geopolitical turmoil. Traders will closely monitor the developments surrounding the US-Iran peace deal and the US May employment report later on Friday. 

US President Donald Trump said ceasefire talks are in the “final” stages, while Iran’s Foreign Minister stated that the negotiations had stalled. On Wednesday, Iran fired missiles and drones at Kuwait and Bahrain, killing one person and injuring dozens at Kuwait’s main airport, after the US struck an oil tanker headed to the Islamic Republic.

A lack of progress in ceasefire talks between the US and Iran after the worst burst of violence in weeks continues to fuel concerns over inflation and expectations of elevated interest rates, which weigh on the Gold price, a non-yielding asset. 

“Higher inflation expectations, associated with the negative supply shocks, have pushed yields across the curve higher, kept the USD firm, and prompted markets to begin pricing in a Fed hike in late 2026,” said Bart Melek from TD Securities. 

The US employment report will take center stage later in the day. The Nonfarm Payrolls (NFP) are expected to show a gain of 85,000 jobs in May, while the Unemployment Rate is projected to remain steady at 4.3% during the same period. Any signs of surprise weakening in the US labor market could undermine the US Dollar (USD) and support the USD-denominated commodity price in the near term.