Gold jumps nearly 4% to seven-week high as dollar slips, Iran-US deal hopes grow ahead of NFP
Gold surged 3.8% on Wednesday, hitting $4,232 — its highest since June 18 — as the dollar weakened and US yields stalled. Optimism over an Iran-US deal and pre-NFP positioning fueled the rally.
Gold prices rallied sharply on Wednesday, with XAU/USD jumping nearly 3.8% to trade at $4,232 — the strongest level since June 18. The move came as the US dollar lost ground and Treasury yields failed to gain traction, removing key headwinds for the metal.
Renewed hopes for a deal between Iran and the US contributed to improved risk sentiment, while alleviating some oil supply fears. This dynamic pressured the greenback and supported gold’s bid ahead of Friday’s non-farm payrolls report.
The precious metal bounced from an intraday low, breaking through resistance to settle at seven-week highs. Market participants now shift focus to NFP data, which may shape expectations for Federal Reserve policy in the coming months.
Source: FXStreet Forex News