Acceptance above 50-day SMA or $4,900 critical to sustain uptrend
Gold snaps two-day recovery early Wednesday, retreating from monthly highs near $4,870.
The US Dollar finds its feet after crumbling to six-week lows, despite hopes of diplomacy in the Iran war.
50-day SMA appears to be a tough nut to crack for Gold buyers amid a Bear Cross, while RSI holds just above the midline.
Gold is pulling back from four-week highs of $4,871 set earlier in the Asian session on Wednesday, as buyers take a breather, weighing the likelihood of a peace deal reached at the upcoming talks between the United States and Iran.
A cautious optimism prevails in Asia on Wednesday. Following US President Donald Trump’s comments that US-Iran peace talks could resume in the next two days.
Furthermore, emerging signs of stabilization in the Strait of Hormuz, amid the US naval blockade, and the resultant retracement in Oil prices have eased inflation concerns, contributing to the market optimism.
Despite the recent recovery in risk sentiment, markets could opt to remain on a cautious footing ahead of the second round of US-Iran peace talks.There are reports that a ceasefire extension could be discussed during the resumption of the talks.
Meanwhile, CNN News reviewed satellite imagery, which showed that Iran is moving to restore access to its underground missile infrastructure during the ceasefire, underscoring the temporary nature of the pause and the risk of renewed conflict.
Against this backdrop, markets remain wary heading into the Iran talks, reviving the haven demand for the US Dollar (USD) while checking the Gold price upside.
All eyes continue to remain on the Mideast geopolitical developments for the next big move in Gold.
Daily technical analysis
In the daily chart, XAU/USD is holding above the 21-day and 100-day SMAs at roughly $4,659 and $4,702, which underpins a cautiously constructive tone even after the recent pullback. However, the metal now sits beneath the broken rising trend-line area near $4,841 and the 50-day SMA at about $4,901, leaving the broader advance capped, while the 14-day Relative Strength Index around 53 suggests only modest, non-exhaustive bullish momentum.
Meanwhile, a 21-day SMA and 100-day SMA Bear Cross confirmed on April 13 also threatens Gold’s bullish attempts.
On the topside, initial resistance is located around the former trend-line support at $4,841, followed by the 50-day SMA near $4,901, where sellers are likely to defend the recent consolidation band. On the downside, immediate support emerges at the 100-day SMA around $4,702, with the 21-day SMA near $4,659 providing a secondary floor ahead of the more distant 200-day SMA near $4,201, which defines the base of the broader uptrend.
Acceptance above 50-day SMA or $4,900 critical to sustain uptrend
Gold is pulling back from four-week highs of $4,871 set earlier in the Asian session on Wednesday, as buyers take a breather, weighing the likelihood of a peace deal reached at the upcoming talks between the United States and Iran.
A cautious optimism prevails in Asia on Wednesday. Following US President Donald Trump’s comments that US-Iran peace talks could resume in the next two days.
Furthermore, emerging signs of stabilization in the Strait of Hormuz, amid the US naval blockade, and the resultant retracement in Oil prices have eased inflation concerns, contributing to the market optimism.
Despite the recent recovery in risk sentiment, markets could opt to remain on a cautious footing ahead of the second round of US-Iran peace talks.There are reports that a ceasefire extension could be discussed during the resumption of the talks.
Meanwhile, CNN News reviewed satellite imagery, which showed that Iran is moving to restore access to its underground missile infrastructure during the ceasefire, underscoring the temporary nature of the pause and the risk of renewed conflict.
Against this backdrop, markets remain wary heading into the Iran talks, reviving the haven demand for the US Dollar (USD) while checking the Gold price upside.
All eyes continue to remain on the Mideast geopolitical developments for the next big move in Gold.
Daily technical analysis
In the daily chart, XAU/USD is holding above the 21-day and 100-day SMAs at roughly $4,659 and $4,702, which underpins a cautiously constructive tone even after the recent pullback. However, the metal now sits beneath the broken rising trend-line area near $4,841 and the 50-day SMA at about $4,901, leaving the broader advance capped, while the 14-day Relative Strength Index around 53 suggests only modest, non-exhaustive bullish momentum.
Meanwhile, a 21-day SMA and 100-day SMA Bear Cross confirmed on April 13 also threatens Gold’s bullish attempts.
On the topside, initial resistance is located around the former trend-line support at $4,841, followed by the 50-day SMA near $4,901, where sellers are likely to defend the recent consolidation band. On the downside, immediate support emerges at the 100-day SMA around $4,702, with the 21-day SMA near $4,659 providing a secondary floor ahead of the more distant 200-day SMA near $4,201, which defines the base of the broader uptrend.
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GOLD at a make-or-break level, awaits clarity on US-Iran peace talks
GOLD remains trapped in range, Mideast developments eyed
Acceptance above 50-day SMA or $4,900 critical to sustain uptrend
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