Gold Price Cautious Amid Conflicting Forces
The gold price has started the new week on a cautious note after ending its three-week losing streak with gains over the final two sessions of last week.
This rebound came as the dollar's rally stalled and oil prices retreated, while a broader improvement in risk appetite lifted major equity indices and extended Bitcoin's recovery to $85,000.
However, gold remains caught between conflicting forces, with consolidation being the name of the game for now. If the US dollar, bond yields, or oil prices start moving higher again, this will negatively impact the price of gold.
The situation in the Middle East and the potential for a US-Iran conflict are still fluid and could have significant effects on the market. President Trump's renewed threat to 'blow up' Iran suggests otherwise.