The price of Gold is roaring higher today, surging 4.5% to as high as $4,255 as of 11:30 AM in New York. The precious metal’s market cap is also up $1.3 trillion to $30.020T at the time of writing. The current price marks the highest level for Gold in around six weeks, thanks to reignited peace talks between the United States and Iran.
One year ago, gold traded at $3,376.72 per ounce, meaning prices have risen 24.20% over the past 12 months.
Progress in US-Iran talks to reopen the Strait of Hormuz led to a drop in crude oil prices and softened inflation expectations, fueling gold prices higher. This has also prompted a shift in Federal Reserve rate-hike forecasts from two increases to one by the year’s end, according to CME FedWatch data cited by CNBC. Spot XAU/USD also climbed 1.3% to $4,127.04, while the US dollar index (DXY) fell to around 99.70.
Looking at Gold’s price chart in recent months, today’s gains so far mark the strongest market reaction in more than one month, as the fresh rally violated the range top ($4203), reinforced by the base of falling and thickening daily Ichimoku cloud patterns, generating significant bullish signals. Further, fresh acceleration for the price higher is likely to face increased headwinds at the $4200 zone, due to the significance of these barriers, as some investors may decide to collect profits; however, subsequent dips should hold above $4166 (broken Fibo 23.6% of $4889/$3942) to revive bulls in play.
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Gold is trading 23.44% below its 52-week high. It remains 26.52% above its 52-week low. However, if peace talks continue between the US and Iran, and if gold-backed ETFs see consistent inflows, Gold may slowly creep back up to its 1-year high.