Gold edged lower on Wednesday but managed to stay above the bullish channel’s lower line. The yellow metal is currently attempting to stabilize above the daily pivot point at $4789 to retest resistance levels at $4871 then $4922. On the downside, if the price fails to gain positive momentum, the decline could extend toward support levels of $4733 then $4688.
Gold prices edged lower on Wednesday after touching a one-month peak earlier in the session, as the dollar regained some strength and renewed hopes of U.S.–Iran peace talks boosted risk appetite.
Market Watch
US, Iran may resume peace talks this week
Talks aimed at ending the Iran war could restart in Pakistan within the next two days. U.S. President Donald Trump said that after weekend negotiations collapsed and prompted Washington to impose a blockade on Iranian ports.
Officials from Pakistan, Iran, and Gulf states also said that negotiating teams from the U.S. and Iran could return to Pakistan later this week, although a senior Iranian source said no date has been set.
US halts all maritime trade to and from Iran
The United States said on Wednesday that its military had fully halted maritime trade into and out of Iran, while President Donald Trump said talks with Tehran to end the war could resume this week, weighing on oil prices for a second straight day.
Trump said negotiations between U.S. and Iranian officials could resume in Pakistan in the next two days and Vice President JD Vance, who led weekend talks that ended without a breakthrough, said he felt positive about where things stood.
Dollar slips near lowest level in more than a month
The U.S. dollar slipped to its lowest level in more than a month on Wednesday, having given back nearly all of its gains since the Iran war began, as renewed hopes of U.S.–Iran talks boosted risk appetite.
The dollar index is currently looking to gain further upward momentum in order to pare its losses and regain its upward trend in the near term.
Looking Ahead
Markets are awaiting the Fed officials’ speeches later today, which could influence gold prices.