Gold prices started the week on the front foot, opening just below $4,100. However, the precious metal has since lost some ground as investors remain uncertain about the progress of US-Iran peace talks. Gold has been under pressure since the start of the conflict, as traders shifted their focus to the inflationary impact of higher energy prices, factoring in a hawkish reaction from central banks. This shift in expectations has strengthened the dollar and led to higher bond yields, creating a headwind for the precious metal. Against this backdrop, traders will remain focused on developments in US-Iran negotiations, with the release of US labour market data on Thursday emerging as the key risk event for gold traders this week. The $4,000 level is becoming an important technical and psychological support, but a stronger-than-expected NFP reading on Thursday could trigger a sustained break below that level.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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