Gold Stuck at 21-Day SMA as US-Iran Talks Loom
Gold (XAU/USD) continues to test the 21-day Simple Moving Average (SMA), a key short-term trend indicator, as investors adopt a cautious stance ahead of high-stakes US-Iran nuclear talks scheduled for later this week. The precious metal has been trading in a narrow range, unable to decisively break above the 21-day SMA.
This technical barrier reflects broader market uncertainty as traders weigh geopolitical developments against shifting Federal Reserve rate-cut expectations. The upcoming US-Iran talks are expected to be a major market driver, with any signs of progress potentially reducing safe-haven demand for gold.
Market participants are also monitoring the broader Middle East situation, as any unexpected developments could trigger sharp moves in gold prices. If the talks lead to a de-escalation, gold could face selling pressure as risk appetite improves.