Gold – The war ended, so why is gold going up?

The US and Iran reached a peace deal. Normally, that pushes gold down because the fear that sends people into gold fades. This time, gold did the opposite. It rose for a third day to around $4,319, its highest since 9 June.

So what's lifting it？ Three forces replaced the war. First, the US dollar fell to a 10-day low, and a weaker dollar makes gold cheaper for buyers around the world.

Second, cheaper oil eased inflation fears, which removed one reason to sell gold. Third, big money is rotating back into gold now that the war and the giant SpaceX listing no longer pull attention and cash away.

The next test is tomorrow. The Fed announces its decision on Wednesday, the first under new chair Kevin Warsh. If he hints that rate cuts are still possible later this year, gold can extend its run. If he warns that high inflation may force a rate hike, gold could quickly give back these gains.

So the bounce is real, but Wednesday decides if it lasts.

Gold key levels:

• Resistance $4,360, then $4,420.

• Support $4,250, then $4,180.

Watching: the Fed decision tomorrow, the US dollar, and final details of the Iran deal.

By Born2trade market research department

Risk Disclaimer: All research and/or forecasts above reflect the author's personal opinion and cannot be treated as trading advice. Born2trade is not responsible for any trading results based on any information in this article. Trading Forex and CFDs carries a high level of risk to your capital. You may lose all of your invested funds. Forex and CFD trading may not be suitable for all investors. Please ensure that you fully understand the risks involved and, if necessary, seek independent advice.