Gold Soars as Iran Deal Talks Cut Oil and Rate-Hike Odds

The XAUUSD price has surged in its strongest session since February due to three headwinds that have backed off simultaneously. The Iran deal talks have led to lower crude oil prices, which in turn have reduced inflation pressure on interest rates. This has caused Treasury yields to decline, with the 10-year yield nearing 4.619% and the 30-year at 5.171%. The dollar is sitting near a six-week low at 99.71 after last week's yen intervention led to unwinding of long-dollar positions.

The ADP employment report missed expectations with only 44,000 new jobs added in July, compared to an estimated 75,000. This has given the Federal Reserve less reason to raise interest rates, which is good news for gold investors. Gold is still down 24% from its record high of $5,595 and 19% since then.