Gold Price Slumps as DXY Hits Two-Month High

The gold price is drifting lower on Wednesday, nearing the $4,300 area as the US Dollar Index (DXY) continues to rally. The DXY is trading just below 101.00, its highest level in nearly two months, weighing heavily on gold.

Investors' optimism about a positive outcome of the US-Iran talks has sent oil prices tumbling this week, with the US benchmark WTI trading nearly 12% below last week's highs. This is providing some support to precious metals, but it may not be enough to offset the bearish momentum in gold.

The technical analysis suggests that bears are gaining traction, with the Relative Strength Index (RSI) remaining capped below the key 50 level and the Moving Average Convergence Divergence (MACD) in negative territory. The immediate trend is rangebound between $4,300 and $4,400, but a confirmation below Tuesday's low at $4,290 could expose the August 7 and September 16 lows.