- Gold surged 4.5% to $4,255 in New York, its highest level in six weeks, driven by renewed US-Iran peace talks.
- The precious metal’s market cap rose $1.3 trillion to $30.02 trillion, while the spot price climbed 1.3% to $4,127.04.
- Progress in talks softened inflation expectations, shifting Fed rate-hike forecasts from two increases to one by year-end.
- Technical analysis shows the rally broke above the $4,203 range top, generating bullish signals, though resistance at $4,200 may trigger profit-taking.
- Gold remains 23.44% below its 52-week high but 26.52% above its 52-week low, with potential for further gains if ETF inflows continue.
Gold prices surged 4.5% to $4,255 on Tuesday in New York, marking the highest level in roughly six weeks amid renewed peace talks between the United States and Iran. The precious metal’s market cap jumped $1.3 trillion to $30.02 trillion, while spot XAU/USD climbed 1.3% to $4,127.04.
One year ago, gold traded at $3,376.72 per ounce, meaning prices have risen 24.20% over the past 12 months. Progress in US-Iran negotiations to reopen the Strait of Hormuz caused crude oil prices to drop and softened inflation expectations, fueling gold’s rally.
Consequently, the Federal Reserve’s rate-hike forecast has shifted from two increases to one by year’s end, according to CME FedWatch data cited by CNBC. The US dollar index (DXY) fell to around 99.70, further supporting gold’s ascent.
Today’s gains mark the strongest market reaction in more than one month, as the rally violated the range top at $4,203, reinforced by falling and thickening daily Ichimoku cloud patterns. However, fresh acceleration above the $4,200 zone may face headwinds, with some investors likely to collect profits, though subsequent dips should hold above $4,166 to revive bullish momentum.
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Gold currently trades 23.44% below its 52-week high and 26.52% above its 52-week low. If US-Iran peace talks continue and gold-backed ETFs see consistent inflows, the metal may slowly creep back toward its one-year high.
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