Gold prices have experienced a slight decline, retreating from a nearly four-week high, as the U.S. dollar rebounded modestly. Spot gold fell by 0.4% to $3,365.22 per ounce, while U.S. gold futures eased by 0.2% to $3,390.10.
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The recent surge in gold prices was fueled by escalating geopolitical tensions, particularly in the Middle East and Eastern Europe, and renewed trade uncertainties. Investors sought the safe-haven asset amid concerns over potential disruptions to global trade and economic stability.
However, the slight recovery of the U.S. dollar has tempered gold's rally, as a stronger dollar makes gold more expensive for holders of other currencies, potentially dampening demand.
Technical indicators suggest that gold's bullish momentum may persist. The Relative Strength Index (RSI) stands at 57.49, indicating upward momentum with room for further gains. Bollinger Bands are expanding, signaling increased market volatility, and a bullish crossover between the EMA 8 and EMA 21 further supports the positive outlook.
In the broader context, ongoing geopolitical tensions and trade disputes continue to underpin gold's appeal as a safe-haven asset. Investors are advised to monitor developments closely, as shifts in geopolitical dynamics and economic policies could significantly influence gold's trajectory.