Gold rallies as Iran-US deal seems closer ahead of NFP
Falling Treasury yields and weaker dollar provided additional support to gold markets.
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I looked into gold at the start of this week and as I said then, sellers were seemingly showing signs of stall as the $4k level had elicited multiple iterations of support. More recently, it was the higher-lows showing a degree of bullish anticipation, but it wasn't until this morning that buyers took that much needed next step, by pushing price up to a fresh monthly high.
Gold price rose over 3% and hit the highest in nearly six weeks on Wednesday, lifted by fresh wave of optimism over a peace talks between the US and Iran, which eased inflation concerns and deflated the US dollar.
The gold market rallied early on Wednesday to break out of a rectangle that we had been in for some time.
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Gold managed to hit the target of 4120 and is now testing the resistance zone of 4140-66, which could keep the market inside this Triangle formation. Above 4166 more advance is likely toward 4200-20 and 4380.
Gold and silver remain supported ahead of Friday's U.S. Nonfarm Payrolls report as softer labor market data, easing Fed expectations, and resilient industrial demand keep precious metals in focus.