Gold (XAU/USD) traded lower for the second consecutive day on Friday, but remained within previous ranges, with downside attempts limited above the $4,500 level. Market volatility was subdued as traders awaited further developments in the ongoing US-Iran war, which is influencing investment decisions and providing moderate support to the safe-haven US Dollar. The US Dollar Index (DXY) stayed near six-week highs, keeping Gold bulls in check. Recent news indicated that Tehran is reviewing a peace proposal from the US, though both sides remain far apart on issues such as Iran’s nuclear activities and control of the Strait of Hormuz. US Secretary of State Marco Rubio stated on Thursday that there was 'some progress' in talks with Tehran, which has generated moderate optimism in the market [1].
From a technical perspective, XAU/USD traded at $4,522, maintaining a capped tone and nearing the tip of a small triangle pattern. The Relative Strength Index (RSI) hovered around 45, suggesting consolidative but slightly negative momentum, while the Moving Average Convergence Divergence (MACD) remained in positive territory but began to ease, indicating that recent upside attempts are losing traction. Technical analysis suggests that triangles are continuation patterns, and in this case, a bearish outcome is favored. The base of the triangle is at $4,500, with key support at the May 20 low near $4,450. A break below this level could expose late March lows at $4,350 and $4,306. Conversely, a confirmation above $4,580 (May 18 highs) would negate the bearish view and shift focus to the May 11 and 12 lows around $4,650, ahead of May's top in the $4,770 area [1].
No explicit analyst opinions or forward-looking statements beyond the technical analysis were provided in the article. The market remains cautious, with traders closely monitoring geopolitical developments for further direction [1].
CONCLUSION
Gold prices are consolidating above $4,500 as traders await clarity on US-Iran tensions and technical signals suggest a potential bearish continuation unless key resistance levels are breached. The market impact is moderate, with sentiment slightly negative due to subdued momentum and ongoing geopolitical uncertainty.