Gold (XAU/USD) rebounded on Tuesday, recovering from Monday's losses and climbing above $4,500, but the recovery stalled below the $4,540 level as market participants remained cautious amid ongoing geopolitical tensions and macroeconomic uncertainty [1]. The precious metal found some support following a partial ceasefire agreement between Israel and Hezbollah, with US President Donald Trump stating that Israeli Prime Minister Benjamin Netanyahu has frozen plans to attack Beirut. This development has fostered hopes for a more durable peace in the region, which has put pressure on the US Dollar Index (DXY) and contributed to gold's resilience [1].
Despite these geopolitical developments, risk appetite remains subdued due to stalled US-Iran peace talks and the continued closure of the Strait of Hormuz, with no reopening plan in sight [1]. On the economic front, US manufacturing data for May indicated healthy business activity, and investor attention is now shifting to the upcoming US JOLTS Job Openings report and the key Nonfarm Payrolls release later in the week, both of which are expected to provide further insight into the US Federal Reserve's monetary policy outlook [1].
From a technical perspective, XAU/USD is trading at $4,530 after failing to break above $4,540 earlier in the day, leaving the price action rangebound. The 4-hour Relative Strength Index (RSI) near 55 suggests some bullish momentum, while a positive Moving Average Convergence Divergence (MACD) indicates that downside pressure has eased, though bulls do not have clear control. Key resistance is identified at $4,590, with a break above this level potentially exposing the $4,645 area. Immediate support is at Monday's low near $4,445, with further support at May's bottom around $4,370 and the base of the bearish channel at $4,340 [1].
CONCLUSION
Gold's price recovery remains limited by ongoing geopolitical uncertainty and cautious market sentiment, with technical indicators suggesting a rangebound outlook. Investors are closely watching upcoming US labor data for further direction, while geopolitical developments continue to influence gold's safe-haven appeal.