I took a look at the gold chart over the last 90 days, and what's been happening is quite interesting. The XAU/USD has been staying above $4,700 for several days, and this is quite significant considering the weakening of the US dollar that we are observing. The combination of lower expectations for rate hikes by the Fed and speculation about a possible peace agreement between the US and Iran is creating a favorable scenario for the precious metal.

What draws attention is that gold has risen for the third consecutive day, but buyers still seem somewhat cautious. That makes sense because we’re not exactly sure how international negotiations will turn out. Meanwhile, US employment data came out better than expected (109,000 new private sector jobs in April), which could pressure gold prices downward, but the weak dollar is offsetting that.

Technically speaking, the breakout of the 200-hour moving average that occurred in recent days is a positive sign. The metal is above the 50% Fibonacci retracement level, and the RSI around 65 indicates there’s still room to go up without being overbought. If you regularly follow the gold price chart, you’ll notice that the nearby resistance is around $4,741. But, look, the MACD is still below the zero line, so this upward momentum isn’t as convincing as it seems. We’ll keep an eye on the employment report coming out tomorrow to see if it confirms this trend or not.