FX.co ★ Farruko | XAU/USD, GOLD

Iranian Foreign Minister Abbas Araghchi confirmed on Sunday that talks and correspondence with the US were still ongoing. Ebrahim Rezaei, a spokesman for the parliamentary National Security Committee, said Iran has not promised Washington anything nuclear. These remarks make it clear that in order to prolong the truce and maintain the US dollar's (USD) appeal as a safe haven, there are still issues that need to be handled between the US and Iran. As a result, the price of gold is prevented from increasing. There are risks to the beautiful metal's drop in the upcoming week unless the US-Iran peace deal significantly improves. The direction of gold prices in the next weeks and Fed rate forecasts may also be affected by the important US Nonfarm Payrolls (NFP) report, which is out on Friday. The US ISM Manufacturing PMI data, which will be released later in the day for new trade incentives, continues to garner immediate attention even though US-Iran news will continue to impact market sentiment and gold volatility. On the daily chart, XAU/USD is trading at $4,522.25. The price of the metal is still under pressure in the short term, staying below the 21-day SMA at $4,582.65 and the 50-day SMA at $4,628.82 but above the more distant 200-day SMA at $4,411.29. This combination suggests a corrective negative bias within a wider upswing, with the Relative Strength Index (RSI) at 44 indicating subdued but substantial downside momentum. The initial barrier to the upside is the 21-day SMA at $4,582.65, which is followed by the 50-day SMA at $4,628.82 and the 100-day SMA, which strengthens a higher resistance band at $4,802.34. The final negative trend-line break level at $4,282.51 will become a deeper structural floor if selling picks up steam. Prior to stronger support at the 200-day SMA near $4,411.29, immediate focus on the downside is on the nearby pivot zone around the current price.