Gold (XAU/USD) maintains a mildly positive tone on Tuesday, holding gains after rallying about 6.5% over the last few days.
The precious metal’s recovery, however, has lost steam after crossing the $4,300 line and remains practically flat as the initial enthusiasm about the US-Iran peace deal faded, with investors awaiting details of the agreement and monetary policy decisions by major central banks
US President Donald Trump said that the deal has already been signed and that the details might be released before Friday. Investors, meanwhile, await more clarity on factors such as traffic through the Strait of Hormuz, which has sent global inflation soaring over the last three months, and Iran’s nuclear program, as the possibility of a re-escalation of the conflict has not been completely ruled out. Apart from that, traders are also awaiting monetary policy decisions by some of the world’s major central banks, including the US Federal Reserve (Fed).
The market will be eager to assess whether the peace deal has prompted policymakers to set aside plans for monetary tightening. Technical Analysis: Gold’s broader trend remains bearish XAU/USD trades at $4,315, extending a corrective phase below a dense band of nearby resistances. Momentum indicators in the daily chart are picking up but not yet at bullish levels.