FX.co ★ XAU/USD, GOLD

XAU/USD As markets evaluate the likelihood of a potential US-Iran peace agreement, gold remains close to two-week highs. XAU/USD is supported by softer oil prices and a declining US dollar, and bullish momentum is increased by dropping yields. Although upside is still limited below important daily moving averages, XAU/USD maintains a somewhat positive tone above the $4,500 support zone. As geopolitical stories continue to influence price movement, gold (XAU/USD) remains stable on Thursday, hovering around two-week highs as traders await further information regarding a potential peace agreement between the US and Iran. After rising by almost 3% on Wednesday, XAU/USD is currently trading at about $4,735. With Tehran considering the most recent US-backed plan, markets are still cautiously optimistic that a deal to end the Middle East conflict may finally be struck. According to a regional source CNN quoted, Iran is scheduled to respond to Pakistan on Thursday. "We've had very good talks over the last 24 hours, and it's very possible that we'll make a deal," US President Donald Trump told reporters at the White House on Wednesday. While oil prices continued to decline from recent highs and the US dollar (USD) fell back toward pre-war levels, global markets responded favourably to the most recent events. A weaker USD and lower Treasury yields are helping the precious metal since the drop in oil prices allays concerns about inflation. Because of this, traders are now pricing in the chance that the Federal Reserve (Fed) would drop interest rates by year's end, reversing earlier predictions that the central bank could need to maintain higher rates for a longer period of time.