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Gold prices are hovering near a weekly low of $4,120 as sellers maintain dominance amid ongoing US-Iran negotiations, which remain volatile and uncertain. The precious metal has lost momentum after testing key support levels, with technical indicators showing bearish pressure. Analysts suggest that a break below $4,100 could trigger further declines, while buyers may step in near $4,050 as a potential short-term floor. The US-Iran geopolitical tensions, though easing slightly, still pose a risk to market stability, influencing safe-haven demand for gold.
For traders, the current price action highlights the importance of monitoring both geopolitical developments and technical levels. A sustained move below $4,100 would likely shift the near-term bias to the downside, testing critical support zones. Conversely, a rebound above $4,200 could rekindle bullish sentiment. The broader market remains sensitive to Middle East dynamics, which could either amplify volatility or provide directional clarity depending on diplomatic progress.
Investors should watch for updates in US-Iran talks and central bank gold purchases, particularly from China and India. Technical traders may focus on the $4,100-$4,200 range as a key battleground. The US dollar's performance against the euro and yen will also influence gold's trajectory, given the inverse relationship between the two assets.
