Gold and silver rebound as the U.S.-Iran peace deal eases inflation fears and weakens the U.S. dollar, with gold eyeing $4,500 and silver targeting $72.
Gold rises to weekly high as US, Iran reach peace deal
Gold closed lower for the second consecutive week on Friday, although it finished the week well off its lows after rebounding.
Gold prices remain under pressure after a steep correction from January's record highs, with rising bond yields and expectations of higher interest rates reducing the appeal of non-yielding assets. Image: Xau USD 14 day chart The Gold Price (XAU/USD) traded near $4,216 on Thursday, down over 7% so far this month and well below.
Gold shows early signs of stabilization after a failed breakdown at key support, with buyers defending a major confluence zone as resistance levels remain overhead.
United States CFTC Gold NC Net Positions dipped from previous $176K to $173.8K
Gold clears $4,200 as optimism on Middle East deal dents inflation woes
The trading week is coming to an end, and although gold has tried to recover in the short term, the move still looks insufficient against the selling pressure that has remained in place over the past few weeks. Over the last five trading sessions, gold is still down close to -3.00%.
Silver markets are also moving higher as rebound continues.
The $4,000 level will continue to be one worth watching, as it should offer a bit of a “floor in the market.” Part of the bounce could have been short covering in all fairness.
The gold market has gapped higher on Friday, as traders continue to worry about headlines out of the Middle East. Holding into the weekend will be dangerous in either direction.
Gold is showing subtle signs of bottoming after testing its March low.