Gold hits two-week high above $4,100 as dollar softens
Gold surged past the $4,100 mark to a near two-week high during the Asian session, supported by a weaker U.S. dollar amid hopes for an Iran nuclear deal and fading expectations of further Fed rate hikes.
Gold (XAU/USD) extended its rally into a second consecutive day, breaking above the $4,100 level during Asian trading to reach a nearly two-week high. The move came as the U.S. dollar broadly weakened, pressured by optimism around a potential Iran nuclear deal and diminishing market bets on additional Federal Reserve rate increases.
The softer greenback made dollar-denominated bullion more attractive for holders of other currencies, fueling the bid. Traders assessed that improving geopolitical sentiments and a more dovish Fed outlook reduced the dollar’s safe-haven appeal.
The precious metal’s advance also reflected technical momentum after it cleared key resistance near the prior week’s highs. Next upside targets could see the metal test the $4,150 area if the current macro backdrop persists.
Source: FXStreet Forex News