XAUUSD Falls as Ceasefire News Shifts Market Sentiment
Gold (XAUUSD) slipped in early Tuesday trading after renewed hopes of a ceasefire between Iran and Israel gained traction. The yellow metal, which often acts as a safe haven during geopolitical uncertainty, saw its demand weaken as traders moved into riskier assets following headlines that suggest de-escalation may be on the horizon.
At the time of writing, XAUUSD has dropped below the 2330 level, showing signs of bearish continuation as momentum favours a risk-on tone.
Ceasefire Talks Shake Safe Haven Demand
Overnight, market sentiment shifted after former U.S. President Donald Trump claimed that Iran and Israel could be nearing a full ceasefire agreement. Although no official confirmation has been given, the statement was enough to reduce risk appetite for gold and increase demand for stocks, oil, and major currencies.
Gold’s recent strength was supported by fears of war escalation in the Middle East. But now, with diplomacy being priced in, gold faces selling pressure as traders rotate their capital into growth-driven assets.
Technical Snapshot on XAUUSD
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Price trades below 2330, testing key intraday support
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RSI remains neutral but leaning bearish on 4H chart
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Major support zone sits near 2315
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Resistance remains at 2350 and 2368
If gold breaks below 2315, further downside toward 2290 could unfold. However, if peace talks collapse or inflation data surprises, gold may quickly regain strength.
Global Risk Sentiment in Play
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Oil prices dip slightly as war-risk premium fades
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Equities rally in Asia and Europe
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USD weakens slightly, while bond yields remain firm
This environment favours short-term gold bears — but uncertainty remains high.
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