FX.co ★ AB2 | XAU/USD (GOLD)

XAU/USD Early on Wednesday, gold falls below $4,350 but stays inside this week's range. As the hawkish Fed bets against chances for diplomacy, the US dollar remains stable at two-month highs. Gold's daily technical setup consistently displays a neutral RSI and a mixed

struggled at $4,350 in Asia on Wednesday, retracing a portion of the earlier rally from sub-$4,300 levels due to new selling pressure. Before the eagerly awaited meeting between US President Donald Trump and his Chinese counterpart Xi Jinping later this week, traders are holding off on making new directional bets on the

: Everyone is watching the Trump-Xi meeting.Despite the most recent decline, gold is still stuck in a well-known range that has been observed thus far this week and lacks a strong sense of direction. Gold seems caught between unrelenting demand for US dollars (USD) and declining oil prices and US Treasury bond yields. Oil prices are being impacted by renewed confidence regarding the diplomatic attempts to reopen the Strait of Hormuz and a potential US-Iran deal, which is reducing concerns about inflation and causing a general decline in US Treasury bond yields. According to a senior Iranian official cited by Kyodo News on Tuesday, if the US lifts its embargo, Iran will reopen the Strait of Hormuz in seven

the UN General Assembly on Tuesday, Trump expressed his belief that the US and Iran will reach an agreement after the US midterm elections in November. Early on Wednesday, US Special Envoy to the Middle East Steve Witkoff reported that mediators shuttled between the two sides throughout the day, concluding a round of negotiations that we hope will prove constructive and promising. Gold's downward moves are constrained by softer US Treasury bond yields, which continue to support non-yielding assets like gold.