Last week, gold got hammered, going all the way down to $4,000 per ounce as inflation fears stole the spotlight. Sky-high oil prices and growing anxiety that the Federal Reserve (Fed) would stay hawkish for longer had traders on edge. Then came the unexpected twist: a US‑Iran peace deal flipped the script. As a result, the American dollar nosedived to a 10‑day low, crude crushed by more than 4%, and the precious metal surged back above $4,300.
Here's the surprising part: the easing of US‑Iran tensions is actually turning into a hidden blessing for gold. Lower Consumer Price Index (CPI) expectations are the missing link in this puzzle. If the Middle East remains calm, oil will head south, reducing the threat of another energy shock. For the market, this is a one‑two punch: less inflationary pressure and a lower probability that the Fed will be forced to jack up interest rates again. In such a world, bond yields would likely drop, the greenback would lose some shine, and gold—always quick to detect dovish policy signals—could ride a fresh wave of support. So, even as the geopolitical premium fades, bullion might still come out ahead with a better monetary outlook.
Now, let's turn to the technicals. Gold has broken free from its downtrend and is steadily rising, up about 8% from its low. All eyes are on one number: the line in the sand that stands at $4,360. A decisive break above this threshold would send a clear "go" signal and mark an attractive entry point for those looking to invest.
The final recommendation:
— Buy gold when it surpasses the $4,360 resistance, aiming for $4,600 per troy ounce within one month.
— To shield your position from a downside move, place a Stop Loss order just below the support level, at $4,250.
This content is for informational purposes only and is not intended to be investing advice.
