Gold Buyers Test Resistance Amid Easing Mideast Tensions and Slumping Oil Prices

The gold market is experiencing a pivotal moment as it navigates the interplay between fading geopolitical risk and shifting macroeconomic narratives driven by lower oil prices.

As tensions in the Middle East ease, gold buyers are testing resistance at $2,340-$2,350 per ounce. This level has previously capped upside attempts in recent sessions.

A sustained break above this area could open the path toward the $2,400 psychological barrier, a key technical target for XAU/USD traders.

However, the slump in oil prices has introduced deflationary pressure, which reduces headline inflation readings and supports the case for the Federal Reserve to consider rate cuts sooner than previously anticipated.