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Gold rises after US-Iran hostilities pause and softer rate outlook
The metal advanced about 1.5% in Asian trading, driven by a weaker US dollar and a pullback in expectations for Fed rate hikes.
Gold traded higher at the start of the week, climbing around 1.5% in Asian trading and moving toward the upper end of a near-term $3,950 to $4,200 range, according to Action Forex.
Action Forex said the backdrop improved after the US and Iran paused hostilities, alongside softer geopolitical rhetoric. The outlet added that the shift eased inflation concerns and reduced expectations for Fed rate hikes in coming months, factors that weakened the US dollar.
The stronger dollar pressure eased, Action Forex noted, helping gold probe again through the $4,100 level after recent weakness held near the $4,000 support zone. The outlet said the daily technical outlook is improving but remains fragile.
Action Forex pointed to $4,072, the 20-day moving average, as an initial support level to watch, followed by $4,052 at the 10-day moving average. It said gold would need to sustain gains above $4,072 to keep a slight bullish bias and, if $4,200 breaks firmly, it could generate an initial reversal signal and support base formation.
Latest closeGold $4,055.70 ▲0.2%