XAU/USD After reaching 15-week highs just below $4,700 early on Tuesday, gold retreats. Amidst new US-Iran sanctions, tech anxiety, and inflation concerns, the US dollar holds onto its rebound
overbought circumstances on the daily chart lessen, gold's bullish potential is still intact. After rising for two days in Asia on Tuesday, gold fell precipitously from new 15-week highs of $4,697. The US dollar (USD) retains its gains from the rebound, limiting more bullion gains. The USD continues to be supported in a risk-off market environment that lasts until early Tuesday, as investors' confidence is undermined by the fall in technology stocks, the US sanctions on Iran, and a fresh increase in oil prices. On Monday, Treasury Secretary Scott Bessent declared that the United States was initiating an "economic onslaught" on Iran's global financial ties. According to CNN News, "The US stopped short of actually imposing big new penalties but threatened damaging new sanctions on countries that refuse to cut economic ties with Iran." Iranian Economy Minister Ali Madanizadeh responded on Tuesday, saying, "We have our own tools and know how to play the game, but naturally, the enemies intend to launch an economic terrorist attack on us." The adversaries should wait for an attack since our defense is no longer as strong. Due to the resurgence of inflation concerns and the USD's allure as a safe haven, these revived geopolitical tensions drove up oil prices, driving gold prices close to $70 thus
At the expense of the non-yielding gold, rising oil prices also raise the rates on US Treasury bonds, supporting the recovery of the dollar. However, lower predictions on a September interest rate rise by the US Federal Reserve (Fed) and strong physical demand from China and India may prevent any corrective decline in the price of the precious metal.
