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Gold rebounds above $4,050 as Iran peace talks outlook improves
The metal is still in a broader downtrend since January’s near $5,602 record, with Friday’s US jobs report seen as a key driver for whether gold extends the pullback or breaks higher.
Gold has had a difficult year, after a near $5,602 all time high in January, the metal has fallen roughly 27% from that peak. It has been weighed by rising Treasury yields, a firmer US dollar, and cooling demand for safe haven assets, Action Forex said.
In the latest move, gold climbed back above $4,050 on Monday after President Trump indicated that peace talks with Iran would resume. The update followed pressure from regional allies including Saudi Arabia to pause military strikes, and Action Forex said the news pushed oil prices lower and eased some inflation concerns, but also reduced some safe haven demand that had supported gold.
The analysis said gold remains in a broader downtrend and is currently testing a descending trendline, while holding just above the 3,900 to 4,000 support area. It added that a decisive break above the trendline would set up a test of the 4,400 resistance zone, where a 200 period EMA also converges, while rejection could leave gold trapped between resistance above and support below.
Action Forex pointed to Friday’s US jobs report as the week’s key catalyst, saying a weak print could revive rate cut expectations and support gold, while a strong one could extend the pullback. It noted that a move breaking below 3,900 to 4,000 would open the path toward the 3,400 to 3,500 area.
Latest closeGold $4,098.60 ▼0.0%