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Gold stays below $4,000 as Iran tensions lift oil and weigh on bullion
XAU/USD is still near the $3,940 area after the metal was set for a 3% weekly decline, with the pullback driven by higher oil prices and higher relative Treasury yields.
Gold futures are seeing moderate gains but remain close to year to date lows near $3,940, with attempts to push above the $4,000 level repeatedly capped, according to FXStreet.
The outlet said gold is set for a 3% weekly decline as resumed hostilities between the United States and Iran and higher oil prices offset a supportive move from lower US Treasury yields.
FXStreet pointed to the market reaction after tensions escalated in Iran, including reporting around possible targeting of civilian infrastructure and Tehran flagging the closure of the Strait of Bab el-Mandeb, moves that would tighten oil supply and add recession risk.
On the technical front, XAU/USD is still in a bearish trend from February highs, with momentum indicators remaining weak and rallies expected to face sellers, while the year to date low around $3,941 is the next nearby downside level.
Latest closeGold $3,981.40 ▼1.6%