Gold Continues to Climb Amid Improved Market Sentiment
Gold (XAU/USD) marked its fourth consecutive day of gains on Thursday, trading at approximately $4,747, bolstered by a weakening US Dollar (USD). Eased geopolitical tensions, particularly concerning the situation in Iran, have enhanced investor sentiment and prompted notable declines in US Treasury yields. The upward momentum suggests a potential target of $5,000 for gold, as it reaches nearly a two-week peak.
US President Donald Trump’s optimistic comments earlier in the week further fuelled market enthusiasm. Trump indicated that the US military could be out of Iran within two to three weeks, regardless of any negotiation outcomes. He assured that Iran would not be able to develop a nuclear weapon for "years" and that the Strait of Hormuz would naturally reopen following the US withdrawal.
Expectations are high for an important address from President Trump on Thursday at 01:00 GMT, where he is likely to provide further updates on the situation with Iran.
Technical Analysis of XAU/USD
A recent examination of the 4-hour chart for XAU/USD indicates a bullish trend, with technical indicators suggesting continued upward momentum. The Relative Strength Index (RSI) is nearing overbought levels, while the Moving Average Convergence Divergence (MACD) shows positive expansion, supporting a bullish outlook.
Gold has recently surpassed the resistance level corresponding to the 38.2% Fibonacci retracement of the March sell-off, hovering around the $4,600 mark. The current trend appears to align with the C-D leg of a Gartley pattern, with a target in sight near the $5,040 area, which previously acted as a support level turned resistance around March 16-17.
On the downside, for sellers to regain control, they would need to push prices below the $4,600 mark, which could open the door to revisit lows from March 26 at $4,355, as well as the year-to-date lows around $4,100.
(This technical analysis was generated with assistance from an AI tool.)
Current Performance of the US Dollar
The following table outlines the percentage change of the US Dollar against several major currencies as of today, showcasing its overall strength, particularly against the Canadian Dollar.
| Currency Pair | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| USD | -0.45% | -0.67% | -0.19% | -0.16% | -0.82% | -0.52% | -0.90% | |
| EUR | 0.45% | -0.23% | 0.24% | 0.29% | -0.36% | -0.06% | -0.46% | |
| GBP | 0.67% | 0.23% | 0.49% | 0.52% | -0.13% | 0.18% | -0.21% | |
| JPY | 0.19% | -0.24% | -0.49% | 0.04% | -0.59% | -0.32% | -0.68% | |
| CAD | 0.16% | -0.29% | -0.52% | -0.04% | -0.64% | -0.35% | -0.73% | |
| AUD | 0.82% | 0.36% | 0.13% | 0.59% | 0.64% | 0.31% | -0.08% | |
| NZD | 0.52% | 0.06% | -0.18% | 0.32% | 0.35% | -0.31% | -0.39% | |
| CHF | 0.90% | 0.46% | 0.21% | 0.68% | 0.73% | 0.08% | 0.39% |
This heat map illustrates the performance of the US Dollar relative to its peers. Today, it showed strength particularly against the Canadian Dollar, while weakening against the Australian Dollar and Swiss Franc.
As market dynamics evolve, observers will be keenly watching both gold prices and the USD’s trajectory, especially in light of geopolitical developments and upcoming updates from the US President.
