Gold prices dipped as improving global sentiment and progress in trade talks shifted investor focus away from safe-haven assets. Easing Middle East tensions and growing optimism around new trade deals encouraged a move toward riskier investments, putting pressure on gold.

Gold dips on easing tensions and trade hopes

Gold prices edged lower at the start of the week, dipping to approximately $3,260 per ounce as investor appetite shifted away from traditional safe-haven assets.

The precious metal touched an intraday low of $3,247.91 before rebounding to settle around $3,280.48 by market close.

The recent de-escalation in geopolitical tensions between Israel and Iran has helped calm market nerves, reducing demand for gold as a protective asset.

In addition, positive developments in global trade negotiations have further dampened safe-haven flows.

US President Donald Trump confirmed a formal trade agreement with China and hinted at a potential major deal with India.

Talks are also reportedly progressing with Mexico and Vietnam, while negotiations with Japan and other partners remain ongoing.

Technical analysis: Resistance caps gold’s rebound

On the 15-minute XAU/USD chart, gold continues to recover from last week’s lows.

Prices have moved above the short-term moving averages (5, 10, and 30), supported by a bullish MACD crossover and increasing histogram strength.

Picture: Gold steady, eyes on $3,300 breakout zone, as seen on the VT Markets app.

However, the upside momentum is facing resistance near $3,283.32, and overall strength remains tentative.

If diplomatic progress and trade optimism persist, gold may struggle to break convincingly above the $3,285.00 threshold.

On the downside, a drop below $3,250.00 could open the path towards $3,230.00.

However, any deterioration in geopolitical stability or weaker US economic data could quickly revive safe-haven interest in gold.

Fed policy outlook hinges on key US jobs data

Traders are now turning their attention to a series of high-impact labour market reports from the United States, including job openings, ADP private payrolls, and the highly anticipated non-farm payrolls (NFP) due Friday.

These figures are expected to influence the Federal Reserve’s policy direction in the coming months.

Although Fed officials have maintained a cautious tone recently, market participants are increasingly pricing in potential rate cuts later this year.

A softer-than-expected NFP report would strengthen the case for monetary easing and could boost gold prices back towards the $3,300 level.

Conversely, stronger jobs data may weigh on gold, keeping it under pressure with short-term downside targets around $3,240 or lower.

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