Gold prices rise near $4,100 as dollar weakens on optimism over Middle East talks
Spot gold climbed to about $4,094 on Monday, supported by a softer U.S. dollar amid improving risk sentiment and steady oil prices.
Gold (XAU/USD) advanced on Monday, reversing Friday’s losses and consolidating the recovery seen last week. The metal traded just below $4,100, near the $4,150 resistance area that had capped recent rallies. A weaker U.S. dollar, buoyed by reports of ongoing negotiations for a peace deal in Iran, helped lift precious metals. President Trump said on Sunday that hostilities with Iran are unlikely to resume if talks progress, adding to the positive market mood.
Despite the dollar’s decline, recent macro data remain supportive of the currency. U.S. non-farm payrolls for October exceeded expectations, prompting expectations of further Federal Reserve tightening in December, a view echoed by several Fed officials after the payroll release.
Technical analysis shows gold breaking above the upper boundary of a downward-sloping channel, with the daily Relative Strength Index near the 50 level and the MACD turning positive, indicating potential upward momentum. Resistance is expected around $4,150; if breached, the next targets are the early-October highs near $4,230 and the mid-September highs around $4,400. Support levels lie near $4,050, the Friday low of $4,030, and the $4,000 psychological mark. A break below these could shift focus to the November low near $3,900 and the channel bottom at $3,825.