XAU/USD recovers from a two-month trough near $4,366 as geopolitical optimism weakens the USD.
Gold prices rose 1.2% on Thursday, rebounding from two-month lows around $4,366 as speculation over a potential US-Iran peace deal weighed on the USD. The move marked a sharp reversal after recent declines driven by stronger-than-expected economic data and a resilient dollar.
Earlier in the week, XAU/USD had fallen to its lowest level since mid-July, pressured by expectations of prolonged higher US interest rates. The latest rally follows a shift in market sentiment, with traders reassessing geopolitical risks amid reports of diplomatic progress.
At publication, spot gold traded near session highs, though further gains may hinge on confirmation of a breakthrough in negotiations.