FX.co ★ HiDe_N_SeEk | XAU/USD, GOLD

XAUUSD Before the European session on Wednesday, gold (XAU/USD) reaches a new daily high and continues to rise from a one-week low that was reached the day before, in the $4,669–$4,668 range. A short extension of the US-Iran ceasefire, which is thought to be a major factor providing some support for the commodity, causes the US dollar (USD) to slightly decline. However, long-term problems in the Strait of Hormuz continue to worry investors. Furthermore, the non-yielding yellow metal may be capped, and deeper USD losses may be prevented by forecasts of a less dovish US Federal Reserve (Fed). In order to allow the two nations to continue peace negotiations to end the war, US President Donald Trump declared on Tuesday that he will extend the ceasefire with Iran indefinitely. However, according to Tasnim News Agency, which is connected to Iran's Revolutionary Guards, Iran has not requested an extension of the ceasefire. Additionally, the American naval blockade of Iranian ports continued to show symptoms of tension between the US and Iran. In fact, Trump declared that he will continue to apply pressure on Iran by keeping the blockade in place. But before peace negotiations can resume, Iran demands that the US remove its blockade. This maintains geopolitical concerns and may help the USD maintain its status as a reserve currency. Technically speaking, the XAU/USD bulls should exercise caution in light of last week's collapse ahead of the $4,900 barrier and the ensuing decline. The 61.8% Fibonacci retracement of the March decline and the 100-period Exponential Moving Average (EMA) on the 4-hour chart comprise the confluence barrier that the precious metal is currently facing. This arrangement maintains a moderately bearish near-term tendency. In the meanwhile, the 50.0% level at $4,754.02 serves as initial support. If bearish pressure continues, a sustained breach below this would reveal the 38.2% Fibo. retracement floor at $4,595.95 and initiate a deeper corrective phase. Conversely, progress beyond the $4,760-$4,765 confluence is followed by a more significant obstacle at the 61.8% Fibonacci retracement at $4,912.08, where sellers would probably regain control if put to the test.