- Gold flatlines above $4,500 after a four-day decline from $4,770.
- Renewed hopes of advances in the US-Iran peace process are weighing on the US Dollar.
- The high US Treasury yields are keeping precious metals subdued.
Gold (XAU/USD) is trading flat above $4,500 on Monday, stabilising after a four-day sell-off from $4,770. Investors await developments in the Middle East conflict as a spokesperson for the Iranian Foreign Ministry affirmed earlier on the day that the US-Iran talks are ongoing.
An Iranian official lifted market sentiment on Monday, stating that Washington and Tehran are analysing a recent peace proposal. The same source added on local media that Iranian and Omani technical teams were discussing options to restore safe transit through the Strait of Hormuz.
Precious metals, however, remain weighed down by a global bond rout, amid high Oil prices. The US 10-year yields are trading at one-year highs at 4.60%, as fast-rising inflation, coupled with the solid economic data recently released, has boosted hopes of Federal Reserve (Fed) rate hikes in late 2026 or early 2027.
Technical Analysis: Gold remains under pressure
XAU/USD retains a bearish near-term bias following a nearly 4% decline last week. The 4-hour Relative Strength Index (RSI) remains in oversold levels, which explains Monday’s consolidating tone, but the negative Moving Average Convergence Divergence (MACD) hints at a slowing downside momentum rather than a clear reversal as red histogram bars contract.
Initial support lies at the $4,500 area (May 4, 18 lows). A confirmation below here would renew bearish momentum, increasing pressure towards the March 26 low at the $4,350 area.
Upside attempts, on the contrary, remain capped below the $4,560 area on Monday, although the first relevant resistance area comes at previous lows around $4,640, ahead of May 7 and 12 highs at the mentioned $4,770.
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