Gold (XAU/USD) trades lower on Monday, reverting Friday’s gains and returning to the $4,500 atrea following rejection at the $4,590 resistance area.
Precious metals remain weighed, as tensions between Iran and the US escalate and Israel ramps up operations in Lebanon, and with a data-busy week ahead in the US. speaker The US and Iran exchanged attacks earlier on Monday, and Israel extended its occupation in Lebanon, adding strain to a frail ceasefire in the region
US President Donald Trump is still due to sign the memorandum of understanding that would extend the truce, while in Iran, the speaker of the parliament vowed retaliation to “clear evidence of US non-compliance with the ceasefire.” On the data front, the US ISM Manufacturing Purchasing Manager’s Index (PMI) report, due later on Monday, is expected to show a healthy business activity, likely to support the Greenback. Investors, however, will wait for a string of labour data, with particular interest on Friday’s Nonfarm Payrolls for further insight into the Federal Reserve’s (Fed) monetary policy plans. Technical Analysis: Gold remains vulnerable below $4,600 XAU/USD trades at $4,500, after yet another rejection at the $4,590 area on Friday.
Momentum indicators in the 4-hour chart hint at fading bullish pressure, with the Relative Strength Index (RSI) hovering near 50 and the Moving Average Convergence Divergence (MACD) indicator flattening near the zero level Bears are set to test Friday’s low in the $4,490 area, which is likely to provide some support. Further down, the May 28 low, near $4,365, will come into focus. On the upside, bulls need to break the mentioned $4,590 resistance area (May 19, 25, 26, and 29 highs) to shift the focus towards mid-May lows at the $4,645 area and the top of the bearish channel, at $4,670. (The technical analysis of this story was written with the help of an AI tool.) Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and…