FX.co ★ AKR48 | XAU/USD, GOLD

XAU/USD As expectations for a peace agreement between the US and Iran put pressure on oil and the US dollar, gold surged more than 3% on Wednesday. Declining oil prices allay worries about inflation and encourage betting on a Fed interest rate drop. Technically, after rising from the $4,500 support zone, XAU/USD acquires positive momentum above important SMAs on the 4-hour chart.

the US dollar (USD) and oil prices decline on Wednesday due to expectations that the US and Iran will come to an agreement to end the Middle East conflict, gold (XAU/USD) rises. As of this writing, XAU/USD is trading at about $4,714, up more than 3% for the day and reaching its highest point in more than a week. Washington and Tehran are getting closer to a one-page memorandum of understanding (MOU) to halt the conflict and set the stage for more in-depth nuclear talks, according to an Axios article that cited two US officials and two other people with knowledge of the situation. According to the article, in exchange for the US lifting sanctions and releasing billions of US dollars in blocked Iranian funds, Iran might cease nuclear enrichment. The blockade surrounding the Strait of Hormuz is also anticipated to be lifted by both sides. According to Iran's ISNA News Agency, a spokesman for the country's foreign ministry stated that Tehran is examining the most recent US request and will communicate its answer to Pakistan. ISNA added that the US proposal has "ambitious and unrealistic" criteria and that some of the Axios story was "speculation". This follows US President Donald Trump's statement on Truth Social that Washington has halted its military "Project Freedom" operation because of "great progress" toward a "complete and final agreement" with Iran.