XAU/USD climbs as traders anticipate a weekend MoU between the US and Iran to reopen the Strait of Hormuz.
Gold prices (XAU/USD) rose to near $4,220 in European trading Friday, extending Thursday’s recovery. The move follows reports that the US and Iran may sign a Memorandum of Understanding by Sunday, potentially reopening the Strait of Hormuz, a critical energy supply route.
The metal had underperformed in recent months as oil prices surged due to the Hormuz closure, fueling inflation and reducing expectations for central bank rate cuts. Non-yielding assets like gold typically weaken in such environments.
Technically, XAU/USD remains below its 20-day EMA at $4,398.58, with the RSI at 36 indicating persistent downside pressure. Resistance at the 20-day EMA could cap further gains.