Gold Prices Soar to Three-Month High Amid Middle East Tensions
Gold prices have reached a three-month peak of over $4,600 as investors flock to the safe-haven asset amid rising Middle East tensions. Despite strong US services data exceeding estimates, gold has maintained its upward momentum. The US S&P Global Services PMI in August came in at 56.8, the highest since December 2024, but failed to halt gold's advance.
The US Treasury Secretary, Scott Bessent, announced plans to double bond buybacks as part of the administration's focus on fiscal consolidation. This move has contributed to a softer US Dollar, further supporting gold prices. The XAU/USD is currently trading at $4,622, up over 2.3%, and poised to end the week with gains of over 5.6%.
The technical outlook suggests that gold buyers are eyeing the $4,700 level as a key target. Momentum remains bullish, with the Relative Strength Index (RSI) indicating further gains in the near term. However, if gold tumbles below $4,600, support levels at $4,514 and $4,500 come into play.