FX.co ★ PipsHunter99 | XAU/USD, GOLD

Technical and Fundamental Analysis of the Gold (XAU/USD) Gold prices (XAU/USD) edged lower during the early Asian session on Tuesday, slipping toward the $4,050 area after giving back part of the gains recorded in the previous session. Although the decline has been modest, investors have become more cautious after reports that the United States suspended its planned military strikes against Iran, reducing immediate demand for traditional safe-haven assets. Even so, gold continues to trade near historically elevated levels as uncertainty surrounding global geopolitics and monetary policy remains firmly in focus. Market attention is now centered on the next phase of developments between Washington and Tehran. Traders are closely following diplomatic headlines for signs of either progress or renewed conflict, as the outcome could have a significant impact on risk sentiment, crude oil prices, and the US dollar. Until there is greater clarity, gold is likely to remain highly sensitive to geopolitical news, with intraday volatility expected to stay elevated. US President Donald Trump stated on Monday that his latest proposal to Iran represented the country's "last opportunity" to reach an agreement after he decided to suspend what he described as a major military operation. According to Trump, negotiations could begin within the next couple of days with the aim of reopening the Strait of Hormuz and creating a framework for addressing US concerns over Iran's nuclear program. The announcement improved overall market sentiment and temporarily reduced demand for safe-haven investments such as gold. Iran, however, presented a different view of the situation. Officials denied that direct negotiations with the United States are currently taking place, although they confirmed that discussions with Oman are continuing regarding maritime traffic through the Strait of Hormuz. Since the waterway remains one of the world's most important energy shipping routes, any disruption to vessel movement could quickly influence global oil prices and broader financial markets. The uncertainty surrounding the Middle East continues to influence precious metal markets. If negotiations fail or tensions rise again, crude oil prices could move higher as investors price in potential supply disruptions. Rising energy prices would likely increase inflation expectations, making it more difficult for major central banks to begin easing monetary policy. Attention is now shifting toward this week's US labor market reports, particularly Friday's Nonfarm Payrolls release. Investors expect the employment data to provide fresh insight into the strength of the US economy and the likely direction of future Federal Reserve policy. Strong employment figures could reinforce expectations that interest rates will remain elevated for longer, potentially supporting the US dollar while limiting gold's upside. Conversely, weaker-than-expected data may revive speculation about future policy easing, creating a more supportive environment for bullion. Gold is currently trading around $4,050, holding just above an important psychological support level while moving within a relatively narrow range. On the H4 timeframe, the overall structure remains cautiously bearish as price continues to struggle beneath both the 20-period Simple Moving Average (SMA) and the 50-period SMA. These moving averages are clustered around the $4,060-$4,075 region and continue to act as a dynamic resistance zone, with several recent rallies failing to break above this barrier. Meanwhile, a well-defined demand zone remains between $4,000 and $4,020, where buyers have repeatedly entered the market and prevented deeper declines. This area has become the primary support level for the current market structure. On the H1 timeframe, price action reflects ongoing short-term consolidation rather than a clear directional trend. Immediate support is located around $4,040-$4,050, where buying activity has consistently absorbed selling pressure during recent pullbacks. The nearest supply zone is positioned between $4,070 and $4,085, an area where several intraday rallies have stalled as sellers regained control. The 20 SMA continues to serve as the first resistance level, while the 50 SMA provides secondary support beneath current prices. If buyers can establish a sustained move above the SMA resistance cluster, gold could extend its recovery toward $4,100-$4,135. However, failure to overcome this resistance would likely keep the market under pressure and increase the risk of another decline toward the major $4,000-$4,020 demand zone, with additional support waiting near $3,940-$3,950 if bearish momentum strengthens.