Gold holds steady near $4,200 as US–Iran peace progress offset by Fed hawkish stance
Gold price rises as Iran talks knock Oil lower
Gold markets moved higher as traders focused on the strong pullback in the oil markets.
The Reserve Bank of India engaged vigorously in the forex market in April, offloading a net amount of $8.94 billion to protect the rupee from plunging to record lows caused by the U.S.-Iran crisis and increasing oil costs. While gold stocks stayed stable, improving geopolitical conditions have bolstered the rupee's prospects, even as forex reserves fell to the lowest level in a year.
Gold markets gapped lower to kick off the trading week, as we are now watching the Middle East yet again. With the weekend meeting seeing mixed results, it makes sense that we are still “stuck.
Gold managed earlier today to hit a rebound while testing the resistance zone at 4220-45. As long as the market holds below this zone, the chance for another drop towards 4100 could hit the market before rebounding.
Gold: Losses extend with higher-for-longer Fed – ING
The ongoing US-Iran ceasefire amid Iran-Israel tensions allowed gold and silver to focus on technical levels. Gold rebounded off $4,194 support while silver traded at $65.99.
Gold starts the week near 4,150 USD per troy ounce, its lowest level since 11 June. The precious metal has recorded a third consecutive weekly decline amid a stronger US dollar and growing expectations that the Federal Reserve may continue tightening monetary policy.
The US dollar is firmer, front-end Treasury yields are higher and Fed funds futures are pricing close to two full rate hikes over the next year. Yet gold is managing to catch a bid.
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