Gold recovers above $4,350 on US–Iran diplomacy hopes
Gold price (XAU/USD) rebounds to near $4,360 during the early Asian session on Wednesday. The precious metal edges higher amid hopes for diplomatic progress between the US and Iran.
Gold prices surged above $4,350 on Wednesday, fueled by optimism surrounding potential US-Iran diplomatic progress. US President Donald Trump reported a "very good meeting" with Iran's delegation, which lasted around three hours, while Iran proposed reopening the Strait of Hormuz within a week. Saudi Arabia is also set to restart its East-West pipeline this week.
However, a hawkish stance from the US Federal Reserve, which raised interest rates last week, could put downward pressure on the precious metal. Analysts note China's significant role in driving gold demand this year, with the country importing over 1,000 tons of gold in the first eight months of the year. Technical indicators suggest that gold is holding above the 100-day simple moving average and approaching the Bollinger middle band, indicating potential for further gains if buyers can maintain the rebound.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
