- Gold price rises to near $4,450 despite easing hopes of de-escalation in the Mideast war.
- Peace mediators stated that Tehran didn’t request a 10-day pause on strikes on Iran’s energy plants.
- Hawkish commentaries from global central banks are expected to act as a key drag on the Gold price.
Gold price (XAU/USD) trades over 1% higher at around $4,450 during the European trading session on Friday. The precious metal attracts bids even as conflict statements by peace mediators against United States (US) President Donald Trump’s claim that the 10-day pause to planned military strikes on Iran’s power plants was requested by Iran have revived fears of a prolonged Middle East war.
According to a report from the Wall Street Journal (WSJ), peace talks mediators have dismissed claims that Iran had requested a 10-day pause on strikes on its energy plants. Mediators added that Iran is yet to deliver a final response on Trump’s 15-point plan, which forces Tehran to open the Strait of Hormuz and give up their missile program plans, but the odds that Iran will agree to those terms are very low.
In addition to the US-Iran divide, the placement of up to 10,000 additional ground troops by the Pentagon in the Middle East has also raised doubts over hopes of de-escalation in Middle East conflicts.
Signs of fading de-escalation hopes in the Middle East are expected to act as a key drag on the Gold price, assuming that the longer conflicts remain, the stronger will be the odds of the oil prices rising further.
Global inflation expectations have accelerated due to higher oil prices, which have also resulted in hawkish commentary from various central banks. Theoretically, hawkish warnings from central banks diminish the appeal of non-yielding assets, such as Gold.
Gold technical analysis
XAU/USD trades higher at around $4,450 as of writing. The overall trend is bullish as price holds above the rising 200-day Exponential Moving Average (EMA) near $4,220. The distance between the spot and the 200-day EMA still frames the broader trend as up.
The pair has broken a sequence of higher closes and now trades well below the mid-$5,000 area, while the 14-day Relative Strength Index (RSI) at 32 shows momentum anchored in weak territory.
Immediate resistance aligns near the March 25 high around $4,600 , followed by $4,820, which is the latest breakdown zone. The spot would rise further to around $5,000 if it manages to break above $4,820. On the downside, initial support is at the 200-day EMA, which is around $4,220, followed by the March 23 low of around $4,100.
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