Gold stretches to $4,600 on Iran peace hopes, silver below $78

Gold is trading higher on Monday, favoured by a moderate risk appetite amid recent comments from the US and Iran hinting at progress in peace negotiations. XAUUSD extended its recovery from last week’s lows, near $4,450, to session highs at $4,579 on Monday, as the DXY Dollar Index retreated to the bottom of last week’s trading range. US President Donald Trump and Secretary of State Marco Rubio have reported some advances in the negotiations with Tehran, yet discarding an immediate breakthrough and warning that the US blockade of the Strait of Hormuz will remain in place until the deal is signed and sealed. On Monday, a spokesperson from Iran’s Foreign Ministry affirmed that both parties are negotiating the end of the war and assured that nuclear negotiations are off the table, which feeds hopes of a swifter agreement. He also reiterated that the Strait of Hormuz should be managed by coastal countries.   Technical analysis: bullish Head & Shoulder in progress XAUUSD trades at $4,572, keeping a mildly bullish near-term tone, with price action forming an inverted Head and Shoulders (H&S) pattern, which is considered a bullish figure. The precious metal, however, will not be out of the woods until the H&S neckline, now around $4,575, and the top of last week’s trading range, at the $4,590 area, are broken. Further up, the next targets would be the previous support level around $4,640, and May’s top at the $4,770 area. On the downside, session lows are at the $4,530 area, which is likely to hold bears ahead of last week’s lows at the mentioned $4,450 area. A break below here negates this view and exposes the March 23 lows near $4,350.   Silver maintains mild bullish stance Silver failed to breach resistance at the $79.00 area earlier on Monday, but XAGUSD remains moderately bid, trading in the mid-$77.00s. Hopes of a US-Iran peace deal are weighing on the US Dollar in a calm Monday trading session and are keeping precious metals buoyed for now. Markets are calm with trading volumes subdued amid a long weekend in the US and UK, due to the Memorial Day bank holiday.   XAUUSD daily timeframe, source: TradingView (Source: OANDA) The post Gold stretches to $4,600 on Iran peace hopes, silver below $78 appeared first on Financial Mirror.