Gold Price Hits New Low as DXY Surges Amid US-Iran Talks
Gold prices are drifting lower, nearing $4,300 as the US Dollar Index (DXY) continues to rally amid high US Treasury yields. This comes despite investors' optimism about a potential peace deal between the US and Iran, which has sent Oil prices tumbling.
The DXY is trading just below 101.00, its highest level in nearly two months, weighing heavily on Gold. Technical indicators suggest growing bearish momentum, with the Relative Strength Index (RSI) remaining capped below the key 50 level and the Moving Average Convergence Divergence (MACD) in negative territory.
Bulls are facing resistance at the $4,400 area, which has been a hurdle for several days. A break below this level could expose the August 7 and September 16 lows around $4,230, also the neckline of a bearish Head & Shoulders (H&S) formation.