Gold Price Poised to Extend Bullish Run Amid US-Iran Tensions
The XAU/USD price is poised to extend its bullish run as US-Canada trade talks break down and the US Treasury Secretary announces measures to financially choke Iran.
US President Donald Trump's threats have lost their weight in financial markets, but his recent remarks are having a negative impact on the Greenback. Market participants are anticipating adverse economic consequences for the country, which is causing the XAU/USD price to gain bullish traction.
The breakdown in US-Canada trade talks has led to fresh concerns about the global economy, and Spot Gold briefly traded above $4,680 a troy ounce on Monday, reaching its highest since mid-May. The XAU/USD holds on to most of its intraday gains in the American afternoon.
From a technical point of view, the four-hour chart shows that the price is holding well above the 20-period Simple Moving Average (SMA) at $4,573.09 and the longer-term 100- and 200-period SMAs at $4,350.49 and $4,204.36, respectively.