Gold slides below $4,550 as Iran tensions lift Dollar, yields now
Gold price falls as oil surge lifts inflation fears, boosting yields and the dollar. Gold market turns bearish as Fed rate cuts fade and pressure builds.
Gold initially fell during the trading session on Monday but continues to see a certain amount of buying just below the crucial $4600 level. That being said, the interest rate situation continues to work against it.
Gold managed to hit the target of 4554 and managed to fall below it. As we see over the chart, Intraday prices remain under pressure with resistance at 4680.
Gold declines as hawkish interest rate outlook and firm US Dollar weigh
Gold price fell at the start of the week, losing around 1.8% by mid-European trading on Monday, reflecting growing concerns about rising inflation that prompted major central banks to take more hawkish stance, despite that all of them kept rates unchanged in the policy meetings last week.
Gold is holding at around 4,611 USD per ounce on Monday as markets assess Donald Trump's proposal to escort commercial vessels through the Strait of Hormuz, alongside tentative signs of progress in US–Iran negotiations.
On the hourly chart of Gold at FXOpen, the price found bids near the $4,500 zone. The price remained in a bullish zone and started a recovery wave above $4,550.
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