Gold rose around 1.5% on Tuesday as fresh signals of diplomatic action to de-escalate US-Iran war cooled inflation risks and expected to ease pressure on the US central bank.
Quick change in sentiment made the yellow metal more attractive to investors, with the latest bounce from very significant $4000 support zone (contained several attacks in past one month) has so far retraced 50% of $4203/$3960 bear-leg and eased immediate downside risk.
Improving technical picture (price broke above 10 and 20 DMAs ($4050 and $4062 respectively and 14-d momentum rises into positive territory) supports the action, although recent gains are still insufficient to generate signal of direction change.
The price may extend gains if favorable fundamentals persist, with break through $4110 (Fibo 61.8%) and $4145 (Fibo 76.4%) to further strengthen near-term structure and expose upper breakpoint at $4203 (recovery top / near-term range ceiling) violation of which to generate initial reversal signal.
Res: 4085; 4110; 4145; 4203
Sup: 4050; 4017; 4000; 3960
