Gold Price Forecast: XAU/USD returns above $4,600 as the Dollar hesitates

LONDON (January 15) Gold's (XAU/USD) reversal from all-time highs found buyers near $4,580 on Thursday, before returning to levels past $4,600 during the European trading session. A somewhat softer US Dollar is providing support to the precious metal, in spite of the easing geopolitical tensions and strong US macroeconomic figures.

U.S. President Donald Trump lowered his tone against Iran as US advisors warned about the risks of a military intervention in the country. Trump said that he believes ths the killings in Iran have stopped, which lessens the odds of an immediate attack on the Islamic Republic.

The yellow metal, however, remains pinned near all-time highs in the $4,640 area, favoured by a moderate pullback in the US Dollar, as upbeat data for the Eurozone and the UK boosted the Euro and the Pound while intervention warnings from Japanese authorities keep Yen bears in check for now.

FXStreet