Gold breaks descending resistance trendline: Watch out bulls!
Gold price rebounds on ceasefire talks
The rebound in gold prices coincided with renewed optimism in the market following reports of a proposed 10-day ceasefire between the U.S. and Iran. According to Axios, mediators including Qatar, Egypt, and Pakistan have suggested a temporary ceasefire alongside the reopening of shipping through the Strait of Hormuz. Neither Washington nor Tehran has formally accepted the proposal.
For the remainder of the week, gold’s price trajectory will be influenced by developments in the Iran-U.S. negotiations, remarks from Federal Reserve officials, movements in oil prices, and fluctuations in the U.S. dollar. Market volatility is expected to remain elevated as geopolitical events unfold, with investors closely monitoring potential impacts on global trade and inflation.
Gold (XAUUSD) Technical Forecast: Can the metal sustain its gains?
From a technical perspective, gold’s immediate outlook appears moderately bullish. The recent decline to $3,980 was met with renewed buying interest, and the break above the trendline resistance indicates weakening selling pressure. However, buyers must reclaim higher levels to confirm a sustained trend reversal.
Looking ahead, a firm hold above the descending trendline, supported by rising volume, would indicate renewed bullish momentum. Currently, gold has retreated slightly to just below $4,070, capped beneath the 20-period Simple Moving Average (SMA). However, if bullish momentum persists, gold could advance towards the $4,100 level this week. Conversely, a return to the $4,000 support level would be critical to temper bearish pressures and mitigate further upward expectations.
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