Gold prices climb to $4,337 on easing geopolitical tensions and expectations of a less hawkish Fed outlook.
Gold prices surged nearly 3% to $4,337 as optimism over a US-Iran memorandum of understanding boosted risk sentiment. The potential deal has raised hopes for reduced geopolitical tensions, particularly around the Strait of Hormuz, easing inflation concerns.
The rally follows a brief dip below March lows last week, forming a potential double-bottom pattern. However, the 200-day moving average at $4,450 remains a critical resistance level, with a break above needed to reverse the recent bearish trend.
Broader market sentiment improved after SpaceX’s strong debut on Friday, while expectations of a less hawkish Federal Reserve and other major central banks further supported gold’s recovery.