FX.co ★ Retired-Mogambo | XAU/USD, GOLD

Monday saw a 1.50% decline in the price of gold (XAU/USD) as risk appetite increases after hostilities between the US and Iran were halted over the weekend, which threatened to sabotage negotiations and oil flow through the Strait of Hormuz. After hitting a daily high of $4,088, the XAU/USD pair is currently trading at $4,021. During Tuesday's early Asian session, the price of gold (XAU/USD) dropped to almost $4,015. As inflationary pressure increased predictions that central banks would maintain higher interest rates for longer, the precious metal continued to decline. After declining from the mid-June high of $4,400 to the year-to-date (YTD) low of $3,959, gold is creating a bearish harami candlestick pattern. The Relative Strength Index (RSI) indicates that sellers are in control and that more declines are probably in store. Therefore, traders will test the daily low of $3,983 on June 26 if XAU/USD clears the psychological barrier of $4,000. The YTD low and the $3,950 psychological level ahead of $3,900 would be the next levels of support below this one. The high of $4,096 on June 26 is the first barrier to rise, followed by $4,100. The next halt would be the peak of $4,115 on June 24. At its June policy meeting, the US Federal Reserve (Fed) voted to keep interest rates unchanged, but policymakers anticipate a rate increase later this year due to mounting worries about inflation exceeding the US central bank's 2% target. It's important to remember that although gold is frequently used as an inflation hedge, it doesn't yield interest, which makes it less appealing during periods of high interest rates. For more hints about the Fed's monetary policy position, traders are waiting for the US Nonfarm Payrolls (NFP) report on Thursday and the US ADP employment data on Wednesday. If the employment numbers yield a better-than-expected result, it may support the Fed's higher-for-longer approach and impact the yellow metal. As of June 30, there was no discernible rise in mine supply, and the official buildup of gold and silver continued to support the markets. In light of rising global debt and shifting currency regimes, official demand from central banks persists in many nations. Silver maintained $58.93 with a channel floor bounce, while gold rose to $4,024, defending double-bottom support. Ongoing official purchases and robust industrial demand for silver continue to be important long-term factors. Metal mining production still faces restrictions. As the gold mining sector works via new production projects, there is still very little annual growth in the production of gold. The same is true for silver, while some of it is still available as a byproduct of mining other metals. Gold Spot is presently trading at $4,024 on the 2H chart. Following a decline from the swing high at $4,324, the price action has shown a number of green continuation candles bouncing around the double bottom near $3,959. Bullish engulfing candles and rejection wicks forming a string of higher lows, which show buyers absorbing close to the $3,959 support region, have reinforced this advance. The RSI has increased over 52, indicating a positive outlook. Furthermore, a strong accumulation region between $3,959 and $4,000 has been discovered by the volume profile. Upside movements are currently constrained by the red 50 moving average at $4,201. Given that the Fibo confluence is supporting a short-term rebound as higher lows are printing, the price structure is currently viewed as neutral to positive when above $3,959, within the longer-term slide from the $4,597 high, which will probably continue to hold.