Gold Holds Support on US-Iran Deal Hopes, Lower Yields
Gold | 2026-06-02 05:36:43
Analysts noted that gold successfully tested and held its rising 200-day moving average near US$4,401 per ounce, reinforcing a key long-term support level.
By Paul Ploumis
SEATTLE (Scrap Monster): Gold prices posted modest gains last week, said the Weekly Markets Monitor Report published by the World Gold Council (WGC). The LBMA Gold Price PM rose 0.9% to US$4,546 per ounce. The prices remained above the critical level of US$4,500 per ounce, while year-to-date gains stood at 4.1%.
Market sentiment was largely driven by optimism about a potential US-Iran agreement that could ease tensions around the Strait of Hormuz. These expectations helped reduce inflation concerns, which in turn led to lower Treasury yields and a weaker US dollar. Both these factors provided good support for gold prices.
Analysts noted that gold successfully tested and held its rising 200-day moving average near US$4,401 per ounce, reinforcing a key long-term support level. Gold’s bullish sentiment strengthened in derivatives markets, especially in the U.S. and China, despite continued outflows from global gold exchange-traded funds. Also, net long positions in COMEX gold futures recorded a jump.
Looking ahead, the yellow metal’s resistance is expected near US$4,607 and US$4,653 per ounce. A sustained break above these levels could open the door to a rally toward US$4,774 and the April high of US$4,889. Conversely, a fall below US$4,401 would signal heightened downside risks for gold prices.
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Frequently Asked Questions
- How did gold prices perform last week?
Gold prices rose 0.9%, with the LBMA Gold Price PM closing at US$4,546 per ounce.
- What factors supported the rise in gold prices?
Lower U.S. Treasury yields and a weaker U.S. dollar, driven by optimism over a potential U.S.-Iran agreement, helped support gold.
- What technical level did gold successfully hold?
Gold held its rising 200-day moving average near US$4,401 per ounce, reinforcing a key support level.
