Gold Pulls Back from $4,700 Peak Amid Dollar Steadiness and Middle East Uncertainty
Gold prices have pulled back slightly from their peak of $4,700 after some profit-taking followed a pause in the US Dollar sell-off. The precious metal is now trading near $4,650, with the XAU/USD quoted at $4,641.
The dollar's steadiness has given investors time to weigh Middle East uncertainty and await US inflation readings. Oil prices have fallen despite fresh US sanctions on Iran, while statements on the Strait of Hormuz and reports of renewed scope for talks between Washington and Tehran have added to the risk backdrop.
On the data front, the ADP Employment Change 4-week average showed companies added 11.750K jobs per week over the four weeks to August 8. The Personal Consumption Expenditures Price Index will be released soon, with annual PCE expected to remain at 3.7% and core PCE at 3.3%.
Technical indicators are still bullish for gold, with it holding above the 20-period SMA at $4,616.76. Traders are advised to use this temporary dip to build long positions, with technical indicators like the 20-period moving average holding firm.