Bearish Bias Ahead of Potential US-Iran Talks (chart)

Today’s Gold Analysis Overview:

  • The Overall Gold Trend: Neutral with a bearish bias.

  • Today’s Gold Support Points: $4765 – $4720 – $4680 per ounce.

  • Today’s Gold Resistance Points: $4830 – $4880 – $4925 per ounce.

Today’s Gold Trading Signals:

xauusd-210426mahmoud.jpeg

Note: These recommendations are suitable for medium-to-long-term traders, provided there is strict adherence to capital and risk management

Daily Technical Analysis of Gold/US Dollar (XAU/USD):

Gold prices are experiencing a bearish bias today, stabilizing around the $4,777 per ounce level at the time of writing. The daily high reached a resistance level of $4,833 per ounce. Across gold trading platforms, selling pressure has been renewed as traders anticipate potential talks between the US and Iran and the approaching expiration of the ceasefire. The US and Iran intend to hold peace talks in Islamabad. The Wall Street Journal reported that President Trump is not inclined to extend the ceasefire deadline beyond Wednesday evening, according to a White House official.

Consequently, commodity market experts believe the trajectory of gold will remain closely linked to developments in the Middle East and their impact on energy markets and inflation expectations.

Gold Price Trend Returns to Neutral Zone

According to the daily chart, gold prices returning to the $4,770 per ounce support level is pushing technical indicators into neutral zones, as evidenced by the performance of the 14-day Relative Strength Index (RSI) and the MACD indicator. The most prominent downward trend will be if sellers succeed in pushing prices down to the $4,730 and $4,660 per ounce support levels, respectively. The scenario for gold prices to rise on the daily chart requires gold bulls to push towards the resistance levels of $4880 and $5000 per ounce, respectively.

Regarding the performance of the US dollar and bond yields, which influence gold trading, the US dollar remained stable in trading as investors weighed renewed tensions between the US and Iran against hopes for a peace agreement before potential talks on Tuesday.

President Trump stated that the US embargo on Iranian ports would remain in place and threatened to attack Iranian infrastructure if Iran did not reach an agreement. The US Dollar Index (DXY) is currently at 98.15.

Simultaneously, US Treasury yields saw little change in Asian trading, as did oil prices. It appears unlikely that President Trump will extend the ceasefire with Iran, even as Iran announced its intention to send a negotiating team to Pakistan for the second round of peace talks with the US.

At the same time, investors will also be focused on the confirmation hearing for Kevin Warsh, the Federal Reserve’s nominee, scheduled for Tuesday. Trading showed the yield on the two-year Treasury note rising 0.6 basis points to 3.721%. Also, the yield on the 10-year Treasury note fell 0.6 basis points to 4.243%.

Conclusion:

we expect gold prices to continue fluctuating in the coming hours until the US-Iranian talks conclude with an agreement and the Strait of Hormuz is reopened, or until they falter again.

Trading Advice:

Dear TradersUp trader, we still prefer selling gold on every strong upward bounce, avoiding risk, and monitoring market influencing factors.

Ready to trade today’s Gold forecast? Here are the best Gold brokers to choose from.

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