Gold Surges to Three-Month High as Middle East Tensions Rise
Gold prices have hit a three-month high of $4,622 after recent developments in the Middle East fueled a rally in the precious metal. Despite strong US services data, which saw the S&P Global Services PMI exceed estimates to reach 56.8, the yellow metal has continued its upward trend.
The softening US Dollar and the US Treasury's bond buyback plan have also contributed to gold's advance. Scott Bessent, the US Treasury Secretary, stated that an increased focus on fiscal consolidation will be the administration's next strategy, with a possible expansion of Treasury buybacks.
Gold buyers are now eyeing $4,700 as the rally extends, with momentum remaining bullish according to technical analysis. The XAU/USD first resistance is at $4,650, ahead of $4,700, and if gold tumbles below $4,600, support lies at the 200-day SMA at $4,514.