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Gold prices (XAU/USD) showed resilience below the $4,700 level during the Asian session on Thursday, halting a retracement from a three-week high. The metal's performance was influenced by lingering skepticism about a potential US-Iran truce, which bolstered the US dollar. Market participants are closely watching how geopolitical tensions and central bank policies might impact gold's trajectory.
The US dollar's strength, driven by uncertainty over the US-Iran deal, has pressured gold, which typically moves inversely to the greenback. Traders are assessing whether the Fed's monetary policy and inflation expectations will provide a directional bias for the precious metal. A breakdown below key support levels could signal further weakness, while a rebound above $4,700 might attract buyers.
For Gulf investors, the interplay between geopolitical risks and USD demand remains critical. The outcome of US-Iran negotiations and the Fed's rate decisions will likely dictate short-term gold movements. Investors should monitor the 4,680-4,720 range for potential trading opportunities, as well as broader commodity market trends.
