Dollar Weakens as Hormuz Tensions Ease
The US Dollar is under pressure as tensions between the US and Iran ease, with reports suggesting a deal to reopen the Strait of Hormuz could be reached soon.
US Treasury Secretary Scott Bessent said a deal could be reached as early as Tuesday or Wednesday, according to CNBC, while Al Arabiya reported that a high-level source believed the full reopening may happen 'within hours or tomorrow'. The news has boosted risk appetite and pushed stock markets higher, but precious metals have remained confined within their tight range.
The XAU/USD price surged towards $4,090, but remains below the key resistance level of $4,100. The short-term technical outlook is bullish, with spot prices holding above clustered simple moving averages, while the daily chart shows a neutral view, with prices just above the 20-day SMA.