Gold Strengthens After US-Iran Ceasefire
Gold prices (XAU/USD) continued their gains for the second consecutive day in Asian trading on Wednesday, as a combination of sentiments supported the precious metal. Gold briefly touched a nearly three-week high before retreating slightly.
Gold's gains came amidst a weakening US dollar, with the dollar index (DXY) falling to its lowest level in nearly a month after the market responded to news of a two-week ceasefire between the United States and Iran. The dollar's decline increased gold's appeal, as the price of this precious metal tends to move inversely to the greenback.
US President Donald Trump stated that he would suspend previously planned military strikes against Iran for two weeks, provided Tehran agrees to a full, immediate, and safe opening of the Strait of Hormuz. Iran reportedly accepted the two-week ceasefire, with negotiations scheduled to begin Friday in Islamabad, Pakistan, which helped improve risk sentiment but also pressured the dollar's position as a defensive asset.
The Gold Price at the Time of This Analysis' Release was $4,814
- Buy if the price moves to $4,805
- Sell if the price moves to $4,820
Resistance 2: $4,850
Resistance 1: $4,835
Support 1: $4,800
Support 2: $4,793
Note:
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on your trading before making any investment decisions.
Source: Newsmaker.id
