Gold (XAU/USD) is exhibiting a moderate bullish tone for the second consecutive day, with prices approaching the $4,800 level after rebounding from one-week lows at $4,664 on Monday [1]. The upward movement in gold is being supported by speculation regarding a new round of negotiations between the US and Iran, which has led to moderate risk aversion and increased demand for precious metals as safe-haven assets against the US Dollar [1]. News reports, including Reuters, indicate that delegations from both countries may be prepared to resume peace negotiations in Pakistan this week. US President Donald Trump stated on Monday that Iran had called to 'work for a deal,' while US Vice President JD Vance commented that it is up to Tehran to 'take the next step' in the negotiations [1].
From a technical perspective, XAU/USD continues to trade within a horizontal range, with resistance at the $4,850 area acting as a ceiling for bullish momentum. Downside attempts are limited by the 38.6% Fibonacci retracement of the March sell-off, around $4,620 [1]. The Relative Strength Index (RSI) on the 4-hour chart has moved above the 50 midline but remains capped below 60, while the Moving Average Convergence Divergence (MACD) indicator is hovering around the zero line, indicating a lack of clear momentum [1].
A break above the $4,850 resistance area (April 8 high) would be necessary to resume the near-term bullish trend, with potential targets at the 61.8% Fibonacci level of $4,932 and a previous support-turned-resistance just above $5,000 [1]. Conversely, a decline below the $4,620 area would negate the bullish structure and expose the March 26 lows near $4,350 [1].
No explicit market reactions or analyst opinions beyond the technical outlook and geopolitical context are provided in the article [1].
CONCLUSION
Gold prices are trending higher, supported by geopolitical developments and technical factors, but face significant resistance at the $4,850 level. A breakout above this area could signal further gains, while a drop below $4,620 would undermine the current bullish structure. Market participants are closely watching US-Iran negotiations for further direction.