“Trump’s more conciliatory tone toward Iran is helping keep a lid on oil prices, which in turn eases some of the inflation pressure that had been weighing on the metal along with a modest pullback in the dollar,” said Tim Waterer, chief market analyst at KCM Trade.
“Any hot readings would likely firm the dollar and lift the odds of a December rate hike, which would quickly put gold back on the defensive,” Waterer said.
XAU/USD trades at USD 4,121 as spot holds below the medium- and long-term moving averages. The 50-day simple moving average (SMA) around USD 4,191 and the 100-day SMA near USD 4,201 both sit overhead, indicating rallies remain vulnerable while the broader trend stays under the 200-day SMA around USD 4,458.
On the upside, immediate resistance sits at the 50-day SMA near USD 4,191, followed by the 100-day SMA near USD 4,201. On the downside, the USD 4,069 level represents immediate support, and a daily close below this level would likely open the way for a deeper pullback.