Gold Pulls Back as Hopes Rise for Hormuz Conflict Resolution
The price of Gold has pulled back from $4,700 as hopes for an end to the US-Iran conflict rise. The yellow metal is trading at $4,641, down 0.2%.
Despite a slight improvement in US housing data and better-than-expected ADP Employment Change, the gold price has stalled. The Relative Strength Index (RSI) is overbought, and traders are cautious about further gains.
The release of the Federal Reserve's favourite inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, will be closely watched ahead of the speech by new Fed Chair Kevin Warsh at the Jackson Hole Symposium. The US economic schedule also features Durable Goods Orders, Gross Domestic Product (GDP) figures, and Initial Jobless Claims data.
The gold price is struggling to break through the $4,700 resistance level. A failure to clear this level could lead to a further decline in prices, with key support levels at $4,600 and $4,519.