Gold looks to regain $4,900 on US-Iran two-week ceasefire
Gold surges past $4,800 to record three-week highs early Wednesday on Trump’s TACO again.
The US Dollar crashes with Oil price as the US and Iran agree to a two-week ceasefire and safe passage via the Strait of Hormuz.
Gold bulls eye a daily closing above 21-day SMA at $4,738 as the RSI flips bullish.
Gold storms through the roof in Asia on Wednesday, building on the previous rebound and hitting the highest level in three weeks, courtesy of the war relief headlines.
Markets are rejoicing soothing headlines on the Middle East war front, as risk-on flows return with a bang and trigger a sharp sell-off in the go-to safe haven – the US Dollar across the board.
The United States and Iran brokered a two-week ceasefire and agreed to entering negotiations on April 10, potentially paving the way for a lasting peace in the Middle East and resumption of Gulf oil and gas exports through the vital Strait of Hormuz.
Trump had earlier threatened extensive attacks on Iran’s civilian infrastructure.
The sell-off in the Greenback provides the much-needed boost to Gold, as the bullion gains nearly 3% so far.
However, it remains to be seen if the ceasefire-led relief lasts as markets assess the details about the ceasefire with Iran’s ten-point proposal.
Additionally, Iran’s Supreme National Security Council said that the proposal also included a condition that Iran would continue its enrichment of Uranium.
Looking ahead, Gold’s upside could be limited as investors remain wary on whether US President Donald Trump will stick to the ceasefire agreement ahead of Friday’s negotiations on the ten-point proposal.
The focus will now shift toward the US fundamentals amid the truce, with the Minutes of the Federal Reserve (Fed) March meeting eagerly waited for fresh cues on a potential interest rate hike this year.
In his recent speech, Fed Chair Jerome Powell stuck to a wait-and-see stance on the interest rate outlook, pushing back against expectations of a likely hawkish pivot.
Daily technical analysis
In the daily chart, XAU/USD is holding a constructive near-term bias as spot remains above the 21-day, 100-day and 200-day SMAs. The short-term 21-day SMA at $4,737.69 rises beneath price and, together with the positively sloped 100-day SMA at $4,668.08, suggests the broader uptrend is still intact despite recent volatility, while the 200-day SMA down at $4,165.14 underpins the longer-term bullish structure. The Relative Strength Index (14) has firmed back to around 52, shifting out of neutral-low territory and hinting that downside momentum has faded for now.
On the topside, immediate resistance is seen at the 50-day SMA, currently near $4,929.20, and a daily close above this barrier would open the way for a retest of the recent record area. On the downside, initial support aligns at the 21-day SMA around $4,737.69, ahead of stronger demand near the 100-day SMA at $4,668.08; a break below these layers would expose the more distant but pivotal 200-day SMA at $4,165.14 as the next key floor.
Gold looks to regain $4,900 on US-Iran two-week ceasefire
Gold storms through the roof in Asia on Wednesday, building on the previous rebound and hitting the highest level in three weeks, courtesy of the war relief headlines.
Markets are rejoicing soothing headlines on the Middle East war front, as risk-on flows return with a bang and trigger a sharp sell-off in the go-to safe haven – the US Dollar across the board.
The United States and Iran brokered a two-week ceasefire and agreed to entering negotiations on April 10, potentially paving the way for a lasting peace in the Middle East and resumption of Gulf oil and gas exports through the vital Strait of Hormuz.
Trump had earlier threatened extensive attacks on Iran’s civilian infrastructure.
The sell-off in the Greenback provides the much-needed boost to Gold, as the bullion gains nearly 3% so far.
However, it remains to be seen if the ceasefire-led relief lasts as markets assess the details about the ceasefire with Iran’s ten-point proposal.
Additionally, Iran’s Supreme National Security Council said that the proposal also included a condition that Iran would continue its enrichment of Uranium.
Looking ahead, Gold’s upside could be limited as investors remain wary on whether US President Donald Trump will stick to the ceasefire agreement ahead of Friday’s negotiations on the ten-point proposal.
The focus will now shift toward the US fundamentals amid the truce, with the Minutes of the Federal Reserve (Fed) March meeting eagerly waited for fresh cues on a potential interest rate hike this year.
In his recent speech, Fed Chair Jerome Powell stuck to a wait-and-see stance on the interest rate outlook, pushing back against expectations of a likely hawkish pivot.
Daily technical analysis
In the daily chart, XAU/USD is holding a constructive near-term bias as spot remains above the 21-day, 100-day and 200-day SMAs. The short-term 21-day SMA at $4,737.69 rises beneath price and, together with the positively sloped 100-day SMA at $4,668.08, suggests the broader uptrend is still intact despite recent volatility, while the 200-day SMA down at $4,165.14 underpins the longer-term bullish structure. The Relative Strength Index (14) has firmed back to around 52, shifting out of neutral-low territory and hinting that downside momentum has faded for now.
On the topside, immediate resistance is seen at the 50-day SMA, currently near $4,929.20, and a daily close above this barrier would open the way for a retest of the recent record area. On the downside, initial support aligns at the 21-day SMA around $4,737.69, ahead of stronger demand near the 100-day SMA at $4,668.08; a break below these layers would expose the more distant but pivotal 200-day SMA at $4,165.14 as the next key floor.
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