Gold Prices Hold Firm Above $4,700 Amid Fed Hike Expectations

Gold (XAU/USD) is maintaining its bullish bias on Monday and trading near its highest levels since mid-May, supported by fading expectations of an imminent interest rate hike by the Federal Reserve (Fed) and lower US Treasury bond yields. The precious metal's appeal as a safe-haven asset remains strong due to geopolitical tensions surrounding Iran.

The XAU/USD pair is trading at $4,647.02, extending its advance above both the 100-day and 200-day simple moving averages (SMAs) at $4,379.73 and $4,516.92, respectively. This reinforces a bullish near-term bias, but the Relative Strength Index (RSI) at 72.03 indicates overbought conditions, hinting that upside momentum is strong but increasingly vulnerable to a corrective pause.

Initial resistance for gold on the topside is seen at $4,773.00, followed by a higher cap around $4,890.00. On the downside, immediate support emerges from the 200-day SMA at $4,516.92, with a deeper demand zone ahead of the more distant horizontal floor near $4,003.29.