Gold Prices Soar as Soft US Dollar and Low Oil Prices Boost Bullish Sentiment

The price of gold has accelerated its recovery on Wednesday, driven by a softer US Dollar as lower Oil prices and downbeat US macroeconomic data cooled market expectations of Federal Reserve rate hikes.

Lower Oil prices have eased concerns about the inflationary impact of energy prices, while softer-than-expected US Job Openings and Factory Orders figures have led investors to cut back bets of a Fed rate hike in September from 67% to 58%, according to data by the CME's Fed Watch Tool.

The XAU/USD pair has reached fresh weekly highs beyond the top of a triangle pattern at the $4,125 area, with bulls targeting the key resistance area around $4,220. Momentum indicators in 4-hour charts endorse the positive view, but bulls will have to clear the horizontal barrier around $4,220 to confirm a bullish reversal and set sail for the mid-June highs.