Gold edged higher after US President Donald Trump announced fresh talks with Iran, boosting hopes for a diplomatic resolution that could ease energy-driven inflation pressures. The precious metal also found support following last week's Federal Reserve meeting, although rising bond yields and expectations that interest rates may stay higher for longer continued to limit gains. Investors remain focused on developments in the Middle East and the Fed's policy outlook, with analysts expecting geopolitical progress to be the key driver of gold's next move.

From a technical point of view, gold continues to trade below both the 50-day and 100-day SMAs, keeping the broader trend tilted to the downside. However, price action has stabilised over the past few weeks, with gold consolidating between the $4,000 support and $4,200 resistance levels. The Bollinger Bands have narrowed, reflecting lower volatility and hinting that a breakout may be approaching. Meanwhile, the Stochastic oscillator is moving around the midpoint, indicating balanced momentum and the absence of a clear directional bias. A decisive break above $4,200 could pave the way for a recovery toward the 100-day SMA, while a drop below $4,000 would likely reinforce the prevailing bearish trend.

Disclaimer: The opinions in this article are personal to the writer and do not reflect those of Exness.