Gold prices appear to have found a solid base, with $4,000/oz (£2,965) increasingly looking like a key support level.

Ongoing buying from Chinese investors at these prices, combined with a more benign US interest rate outlook, and a softer US dollar, has helped lift gold back towards its 50-day simple moving average at around $4,175/oz (£3,095).

This marks the first time the metal has approached this technical level in nearly three months, highlighting the improvement in market sentiment.

Looking ahead, further positive developments in US-Iraq relations could provide additional momentum, encouraging investors to push prices higher.

As a result, the $4,175/oz (£3,095) level is likely to be tested several times in the near term. A sustained break above this level would be a constructive technical signal, opening the way for a move towards the mid-June high of just under $4,400/oz (£3,262).

While short-term volatility is likely to remain, gold is well positioned to extend its recent recovery if current market conditions persist.