Gold prices surge 1.86% due to geopolitical tensions and weak US dollar.

From Investing.com: 2025-05-21 04:08:00

Gold prices surged by 1.86% on Tuesday due to heightened geopolitical uncertainty and a weakening US dollar. Reports of potential Israeli strikes on Iranian nuclear sites, US-Russia-Ukraine ceasefire talks, and new sanctions against Russia fueled demand for safe-haven assets. The US dollar remained weak amid cautious Fed outlook and credit rating downgrade. XAU/USD continued to rise, with key levels at $3,260 support and $3,340 resistance.

The euro rose by 0.39% against the US dollar as market unease persisted over US fiscal policy and trade talks. Investors reassessed dollar holdings amid waning confidence in US assets. EUR/USD continued to climb, with key levels at 1.13000 support and 1.14000 resistance. The ongoing G7 finance ministers’ meeting may provide insights into US officials’ stance on the dollar.

The British pound strengthened by 0.22% against the US dollar after the UK and EU agreed on trade and defense relations reset. BoE Chief Economist’s hawkish comments and supportive interest rates boosted GBP/USD. Traders should watch the upcoming UK data for potential impact on BoE interest rate decisions. Key levels to monitor are 1.34500 resistance and 1.33000 support.



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