FX.co ★ AKR48 | XAU/USD, GOLD

XAU/USD Amidst continued unpredictability in the Middle East, gold recovers after beginning the week with a negative gap. The narrative of higher-for-longer interest rates is still supported by oil-driven inflation concerns, which put pressure on the non-yielding metal. Technically, XAU/USD stays above the Bollinger mid-band support and has a near-term bullish bias. After beginning the week with a bearish gap, gold (XAU/USD) recovers thanks to a weaker US dollar (USD). Upside, however, is still limited because of the ongoing uncertainty surrounding the US-Iran confrontation, which feeds concerns about oil-driven inflation and keeps central banks under pressure to maintain high borrowing prices. XAU/USD is currently trading at $4,735, up roughly 0.50% for the day after hitting an intraday low of about $4,648. After US President Donald Trump called Iran's answer to a US-backed proposal to end the war "totally unacceptable" in a post on Truth Social, hopes for a short-term peace agreement evaporated. Iranian state media reported that Tehran's proposal emphasised Iran's sovereignty over the Strait of Hormuz and called for US reparations for war damages. Esmaeil Baghaei, a spokesman for Iran's Foreign Ministry, stated on Monday that Tehran was merely attempting to protect its rights and had made "generous and responsible" recommendations to the United States. Baghaei accused Washington of making "unreasonable demands" and added that his nation's proposal was not excessive. The length of the US-Iranian conflict is undetermined because negotiations over Iran's nuclear programme are still underway despite diplomatic efforts. Due to increased concerns of protracted supply interruptions across the Strait of Hormuz, oil prices continue to carry a premium for geopolitical risk.