Gold price crawls back on US-Iran deal optimism

The US dollar’s corrective slide further supported the upward momentum. The greenback remained under heavy selling pressure on Tuesday. After an early sharp decline, bullion found a temporary floor as the US dollar weakened and oil prices eased. As markets digest the latest geopolitical developments in the Middle East, gold is currently trading mostly flat to slightly higher.

What to focus on next?

For the remainder of the week, gold’s main drivers remain geopolitical developments and US dollar movements. Investors are also awaiting key economic releases, including the US Producer Price Index (PPI) on Tuesday and the Federal Reserve’s Beige Book report on Wednesday, which could influence future Fed decisions. The CME FedWatch tool shows nearly a 100% probability that the Federal Reserve will hold rates steady at the April 28–29 FOMC meeting.

At the same time, market volatility continues to rise amid US-Iran updates, as traders assess the potential impact of renewed tensions on global trade and inflation. Additionally, US bond yields and broader market risk sentiment will influence the US dollar’s price dynamics, providing further impetus to gold prices.

Gold (XAUUSD) Technical Forecast

The current price action indicates that the short-term bullish trend remains solid. If buying pressure persists, short-term resistance is seen around $4,800 to $4,810. A breach and close above this range could pave the way to the next significant resistance at $4,860. Furthermore, a break and a 4-hour close above the $4,860 level may drive the metal prices toward the key resistance zone at $4,900.

However, given the strong rebound, there is a risk that if gold fails to hold above $4,700, traders may use this level to book profits on long positions

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