Gold (XAU/USD) traded higher on Monday, reaching session highs at $4,579, as market sentiment improved due to recent comments from US and Iranian officials suggesting progress in peace negotiations between the two countries [1]. The precious metal extended its recovery from last week's lows near $4,450, supported by a retreat in the US Dollar Index, which fell to the bottom of last week's trading range [1].
US President Donald Trump and Secretary of State Marco Rubio reported advances in negotiations with Tehran but emphasized that an immediate breakthrough is not expected. They also stated that the US blockade of the Strait of Hormuz will remain until a deal is finalized [1]. Meanwhile, a spokesperson from Iran's Foreign Ministry confirmed ongoing negotiations to end the war, clarified that nuclear issues are not part of the talks, and reiterated that the Strait of Hormuz should be managed by coastal countries [1]. These developments have fueled hopes for a quicker agreement and contributed to the positive momentum in gold prices [1].
From a technical perspective, XAU/USD is trading at $4,572 with a mildly bullish near-term tone, forming an inverted Head and Shoulders pattern—a bullish signal. The Relative Strength Index (RSI) stands at 58.93, indicating positive momentum, while the Moving Average Convergence Divergence (MACD) has turned decisively higher in positive territory, suggesting that buyers are gradually regaining control [1]. Key resistance levels are identified at the H&S neckline around $4,575 and the $4,590 area, with further targets at $4,640 and May's top at $4,770. On the downside, support is seen at $4,530 and $4,450, with a break below exposing the March 23 lows near $4,350 [1].
No explicit analyst opinions or forward-looking statements beyond the technical analysis are provided in the article [1].
CONCLUSION
Gold prices have risen on optimism surrounding US-Iran peace negotiations and a weaker US Dollar. Technical indicators suggest a bullish outlook, though key resistance levels remain to be broken for further gains. The market is cautiously optimistic, awaiting concrete developments from ongoing diplomatic talks.