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Gold supported as US dollar steadies ahead of potential Fed shifts
The metal also drew support from a lessening risk of higher oil prices as Iran and Oman made progress on reopening the Strait of Hormuz, while Citi expects gold to target about $4,500 in the fourth quarter.
Gold is trading with support as the US dollar stabilizes, a backdrop shaped by strong manufacturing business activity data and renewed market interest in artificial intelligence, according to analysis from Action Forex.
The article links gold performance to expectations for Federal Reserve policy, noting that markets are debating whether rising Treasury yields are intended to tighten financial conditions and curb inflation, while investors still view the Fed as not in a hurry to raise rates.
For gold, that uncertainty matters because it is closely tied to the dollar and Treasury yields, but the commodity also has found additional backing from a calmer geopolitical environment, including progress reported in Iran's dialogue with Oman on reopening the Strait of Hormuz.
Action Forex adds that inflows into Chinese ETFs have continued for 14 consecutive days as investors buy gold near $4,000 per ounce, and it cites Citi forecasting that XAUUSD could stabilize near current levels, with a fourth quarter move toward $4,500 per ounce.
Latest closeGold $4,106.70 ▲1.4%