Gold Soars to Highest Level Since Late May as Dollar Weakens
Gold prices have surged to their highest level since late May, reaching $4,600 as traders bet on a weaker US Dollar. This comes despite lingering concerns over inflation risks and geopolitical tensions in the Middle East.
The precious metal has been gaining momentum after breaking above its 200-day Simple Moving Average (SMA), with bulls eyeing further gains to $4,687. The US Treasury Department's plan to double the size of some long-dated debt buyback operations remains supportive of elevated US bond yields.
However, investors remain cautious due to ongoing tensions between the US and Iran, with President Donald Trump threatening 'the most crushing economic operation' against Tehran. This has kept the geopolitical risk premium in play, potentially limiting deeper losses for the safe-haven buck.