FxAnalysis

Gold is extending the previous big breakout, briefly testing the $4,300 level for the first time in seven weeks in the Asian session on Thursday.  

Silver flirted with $63 on Wednesday, its highest in over a month amid renewed market optimism. Investors welcomed news hinting at a soon-to-come deal between the United States (US) and Iran.

Directional bias: Neutral to bullish above the 200-day SMA, although repeated difficulty clearing 0.7000 leaves the pair exposed to another rejection.

Gold is building on its recovery from near the $4,020 region in Wednesday’s Asian trades, advancing beyond the $4,100 round level.

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

The US Dollar (USD) is under mild selling pressure on Tuesday, pressured by headlines indicating that a deal to reopen the Strait of Hormuz could be reached as soon as Wednesday.