Gold prices (XAU/USD) maintained modest recovery gains throughout Thursday's Asian session, moving away from weekly lows.
A surprise ceasefire in Lebanon and US domestic political moves successfully triggered profit-taking in the US Dollar (USD), giving global commodities some breathing space, although prices remained firmly stuck below the psychological $4,500 level.
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✅ Sentiment Drivers: Lebanon Pact & Trump's Military Restrictions
Today's early volatility was largely driven by the easing of short-term risk premiums in Washington:
- 🔸Formal Lebanon-Israel Ceasefire: A formal US-led agreement in Washington on Wednesday stipulated a complete cessation of fire by Hezbollah and their operational evacuation from southern Lebanon. This step cooled tensions in the ground war that had briefly crossed the Litani River.
- 🔸US House Political Intervention: Bearish dollar sentiment was exacerbated after the Republican-controlled US House of Representatives surprisingly approved a resolution to block President Donald Trump from taking further unilateral military action in Iran without congressional approval. This move dampened expectations of an escalation of open warfare, dragging the DXY down from its strongest level since April 7, and triggering short-covering in gold.
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✅ XAU/USD Technical Analysis (Intraday)
Technically, gold is experiencing an intraday accumulation phase within the previous day's trading range (inside bar):
- 🔸Pivot Zone ($4,500): Gold needs a clean 4-hour chart close above the psychological $4,500 level to attract new momentum buyers to retest the $4,550 area.
- 🔸Market Attitude: "Cautious Bullish Relief." Without aggressive follow-through buying, the current rally is purely a technical correction due to the weakening dollar.
- 🔸Defense Floor ($4,450): The late-March low remains recognized as a structural safety barrier. As long as gold holds above this level, the risk of an extreme fall before tomorrow's NFP data is minimized.
A surprise ceasefire in Lebanon and US domestic political moves successfully triggered profit-taking in the US Dollar (USD), giving global commodities some breathing space, although prices remained firmly stuck below the psychological $4,500 level.
------------------------------------------------------------------------------------------------
✅ Sentiment Drivers: Lebanon Pact & Trump's Military Restrictions
Today's early volatility was largely driven by the easing of short-term risk premiums in Washington:
- 🔸Formal Lebanon-Israel Ceasefire: A formal US-led agreement in Washington on Wednesday stipulated a complete cessation of fire by Hezbollah and their operational evacuation from southern Lebanon. This step cooled tensions in the ground war that had briefly crossed the Litani River.
- 🔸US House Political Intervention: Bearish dollar sentiment was exacerbated after the Republican-controlled US House of Representatives surprisingly approved a resolution to block President Donald Trump from taking further unilateral military action in Iran without congressional approval. This move dampened expectations of an escalation of open warfare, dragging the DXY down from its strongest level since April 7, and triggering short-covering in gold.
------------------------------------------------------------------------------------------------
✅ XAU/USD Technical Analysis (Intraday)
Technically, gold is experiencing an intraday accumulation phase within the previous day's trading range (inside bar):
- 🔸Pivot Zone ($4,500): Gold needs a clean 4-hour chart close above the psychological $4,500 level to attract new momentum buyers to retest the $4,550 area.
- 🔸Market Attitude: "Cautious Bullish Relief." Without aggressive follow-through buying, the current rally is purely a technical correction due to the weakening dollar.
- 🔸Defense Floor ($4,450): The late-March low remains recognized as a structural safety barrier. As long as gold holds above this level, the risk of an extreme fall before tomorrow's NFP data is minimized.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.