Gold rallies as Iran-US deal seems closer ahead of NFP
Gold (XAU/USD) price surges to its highest level in nearly seven weeks, gaining nearly 3.80% on Wednesday as the Greenback loses ground and US Treasury yields fail to gain traction. The XAU/USD pair trades at $4,232, its highest level since June 18, after bouncing off daily lows of $4,065.
Gold prices surged to their highest level in nearly seven weeks on Wednesday, with the XAU/USD pair trading at $4,232, its highest level since June 18. The precious metal gained nearly 3.80% as the US Dollar weakened and US Treasury yields failed to gain traction. The XAU/USD pair broke above the 50-day Simple Moving Average (SMA) at $4,161, signaling a shift to a bullish momentum.
The US Dollar Index (DXY) dropped 0.12% at 99.76, while the July Nonfarm Payrolls figures were released on Friday, with economists expecting job creation of 80K and the Unemployment Rate to remain steady at around 4.2%. The ADP Employment Change report showed weaker-than-expected job growth at 44K, below the forecast of 70K. Despite the economy showing signs of resilience, traders remain cautious, with the Federal Reserve considering a gradual rate hike and the Kansas City Fed advocating for strict monetary policy to combat high inflation.
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