Gold Seeks $4,700 as US Dollar Weakness Continues
Gold prices are making another push towards $4,697 as the US Dollar weakens. The upbeat mood in the market and lower interest rate expectations are contributing to this trend. Although the latest PCE inflation data came in higher than expected, it's not enough to deter investors from seeking safe-haven assets.
The recent agreement between Iran and Oman on revenue sharing for the Strait of Hormuz has also eased tensions in the region, further reducing the USD's appeal as a safe-haven asset. Meanwhile, Nvidia's strong earnings report has boosted investor sentiment, adding to the dollar's decline.
Technically, gold is trading above its key moving averages, with the 200-day SMA at $4,525.40 serving as initial support. The Relative Strength Index (14) indicates strong upside momentum, but also suggests a potential pullback towards the $4,525 area if the price continues to rise.