Gold Price Dips Below $4,300 Amid Rising US Dollar and Hawkish Fed Sentiment
The gold price (XAU/USD) has drifted lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.
Investors' optimism about a positive outcome of the US-Iran talks sent Oil prices tumbling this week, providing some support to precious metals. However, the DXY continues to head north and trades just below 101.00, its highest level in nearly two months, weighing heavily on gold.
The technical analysis suggests that bears are gaining momentum, with the Relative Strength Index (RSI) remaining capped below the key 50 level and the Moving Average Convergence Divergence (MACD) in negative territory. The immediate trend shows growing bearish momentum, and a confirmation below $4,290 exposes the August 7 and September 16 lows around $4,230.
The US Special Envoy, Steve Wickoff, has confirmed that negotiations are ongoing between the US and Iran, with US President Donald Trump affirming on Tuesday that the US had 'a very good meeting, a very productive meeting' with Iranian officials, and that there was 'a lot of momentum' towards an agreement.