Gold: XAU/USD hovers below $4,000 with the YTD low at hand

LONDON (June 17) Gold (XAU/USD) shows moderate gains on Friday, but remains close to the year-to-date lows, at the $3,940 area, with upside attempts capped below the $4,000 psychological level for now. The precious metal is set for a 3% weekly decline, as the resumed hostilities between the US and Iran and the higher Oil prices have offset the positive impact of lower US Treasury yields.

Bullion tumbled on Thursday as tensions in Iran escalated with US President Donald Trump threatening to target civilian infrastructure, like power plants and bridges. Tehran, in turn, flagged the closure of the Strait of Bab el-Mandeb, a move that would strangle Oil supply further and bring the global economy to the brink of recession.

FXStreet