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Gold prices (XAU/USD) rose over 1.20% on Thursday, rebounding from a two-month low near $4,366 as speculation about a potential US-Iran peace deal weakened the US dollar. The precious metal climbed to $4,500 at the time of reporting, driven by improved market sentiment amid geopolitical tensions easing. The dollar's decline, linked to hopes of de-escalation in the Middle East, boosted gold's appeal as a safe-haven asset.
This development is significant for traders as it highlights the interplay between geopolitical events and currency markets. A weaker USD often strengthens gold prices, as the metal is priced in dollars. Investors are closely monitoring how diplomatic progress between the US and Iran could further impact dollar demand and gold's trajectory. Central banks and institutional investors may also adjust their portfolios based on these dynamics.
Looking ahead, the focus will shift to concrete developments in the US-Iran negotiations and their broader implications for global markets. Traders should watch for follow-through buying in gold and potential dollar weakness against major currencies like the euro and yen. Additionally, technical levels around $4,500 could serve as key resistance for XAU/USD in the short term.
