Gold holds near seven-week high as markets await Strait of Hormuz deal
Gold (XAU/USD) trims intraday gains on Thursday after briefly climbing above $4,300 as the US Dollar (USD) steadies while traders await confirmation of a possible Iran-Oman agreement on the Strait of Hormuz. At the time of writing, XAU/USD trades around $4,260, up 0.30% on the day.
Gold (XAU/USD) remains near a seven-week high as investors await a possible Iran-Oman agreement on the Strait of Hormuz. The precious metal briefly broke above $4,300 on Thursday before steadying as the US Dollar steadies. XAU/USD is currently trading around $4,269, up 0.52% for the day. Iran announced an agreement with Oman on a proposed shipping route through the Strait, though Tehran maintains it would only be temporary.
Meanwhile, oil prices and labor-market data have created a supportive backdrop for Bullion. Higher borrowing costs could weigh on Gold, increasing the opportunity cost of holding the non-yielding metal. Technical analysis indicates the metal has recovered above the 50-day Simple Moving Average (SMA) but remains constrained by the 100- and 200-day SMAs.
The Relative Strength Index (RSI) leans towards bullish momentum, while the Moving Average Convergence Divergence (MACD) holds in positive territory. Should a pullback occur, immediate support is expected at the 50-day SMA near $4,157, with a deeper structural floor around $4,000.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Gold: Hormuz optimism supports rally – ING fxstreet.com
