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Gold rises to around $4,067 as oil pullback supports safe-haven demand
XAU/USD is up 1.5% to about $4,067, while the dollar index slips 0.1% to roughly 100.9 and oil retreats after a fresh monthly high near $84.42.
Gold prices climbed about 1.5% in European trading on Tuesday, with XAU/USD rising to around $4,067 as investors rotated toward safe-haven demand.
FXStreet reports that the metal gained support as the rally in WTI stalled after it recovered to near $82.65, then corrected sharply following a fresh monthly high at $84.42. The pullback in oil is cited as easing inflation expectations and reducing fears of central bank rate hikes, which can benefit non-yielding assets like gold.
The move also comes alongside a modest pullback in the US dollar. At press time, the US Dollar Index was down about 0.1% to around 100.90, and FXStreet said a weaker dollar can improve gold’s risk-reward setup for investors.
On the outlook, FXStreet noted gold is attempting to break out of a Descending Triangle after moving sideways for nearly a month. It pegged immediate support near the recent break level around $4,043, with the 20-day EMA around $4,089 as an initial barrier, and it cited a subdued 14-period RSI near 45 indicating limited bullish conviction.
Latest closeGold $4,292.00 ▲1.1%|WTI crude $78.07 ▲3.8%|Dollar index 99.98 ▲0.3%