Gold Rallies 0.8% To $4,194 Post 3-Session Losses; Multi-SMA Resistance Caps Bull Rebound

Spot gold rose 0.8% to $4,194.83 an ounce on Monday, while U.S. Gold Futures climbed 0.9% to $4,211.66. The safe-haven metal notched a tepid bounce, after bullion slumped 1.4% last week and closed out three straight losing sessions.

Gold drew mild support from upbeat U.S.-Iran diplomatic progress in Switzerland four-party talks. Iran’s foreign ministry confirmed tangible negotiation advances, while Qatari and Pakistani mediators confirmed both sides have agreed on a truce roadmap, with technical negotiations set to run all week long.

De-escalation hopes eased market fears over Strait of Hormuz supply disruption, dragging crude prices lower. Cooling energy inflation pressure eased bets for aggressive Fed rate hikes, delivering fundamental support to non-yielding gold. Still, the metal’s upside remains heavily constrained by Fed hawkish policy bias.

Markets continue pricing in prolonged higher U.S. rates post last week’s FOMC meeting, where policymakers kept further rate hikes on the table amid sticky inflation. The U.S. Dollar Index holds firm near a 13-month high, limiting gold bull momentum.

ING analysts noted the core gold trading dilemma: “Geopolitical risks should continue to provide underlying support, but a higher-for-longer US rate environment may limit near-term upside.”

All market focus pivots to the upcoming U.S. May PCE inflation data, the Fed’s favoured inflation gauge, which will define the near-term XAU/USD trend.

Other precious metals edged higher alongside gold: silver rose 1.6% to $66.03/oz, platinum gained 0.3% to $1,671.60/oz.

XAU/USD Technical Analysis

source：tradingview

Gold filled its bearish opening gap during Monday’s Asian session, trading at$4,154.73 on the daily chart. The metal trades firmly belowfour key daily SMAs, keeping the near-term structure bearish, with every rebound capped by layered overhead trend resistance.

The 14-period daily RSI stands at 35, staying in bearish territory to sustain lingering downside momentum.

Key Overhead Resistance

▪️ Immediate resistance: 21-day SMA at $4,347

▪️ Secondary resistance: 200-day SMA at $4,469

▪️ Major supply barrier: 100-day SMA at $4,714

No critical SMA support lies below spot price. Only a daily close above clustered moving averages will ease prevailing bearish pressure.