Gold (XAU/USD) Daily Outlook Update Gold (XAU/USD) has posted solid gains today, reversing Friday's declines while consolidating its weekly recovery attempt. Prices are trading around $ 4,100, with the weekly high of $4,150 in focus for bulls. Precious metals are getting support from a declining US dollar amid ongoing attempts to sign a peace deal in the Middle East, and Oil is stable around its two-month lows. The US Dollar is falling everywhere on Monday after improved market sentiment amid news reports of ongoing attempts to sign a peace deal with Iran. US President Trump helped to ease concerns of investors about escalating tensions with the Islamic Republic as he announced in Sunday's speech that no hostilities will resume. However, recent macroeconomic data has been USD-bullish. The October US Nonfarm Payrolls expansion beat expectations by a large margin, clearing the way for additional tightening by the Federal Reserve (Fed) in December. Fed officials also backed this stance after Friday's NFP print. This should limit USD declines. XAU/USD is trading at $4,094 after rebounding above the upper line of the bearish channel today. The overall outlook remains capped as gold spot prices stay well below the 200-day SMA. However, the RSI (14) on the daily time frame has stabilized around 50, and the MACD line has turned positive, reflecting rising bullish momentum. The bulls will face the hurdle at the discussed $4,150 level, the top of rallies last Friday. If it breaks down, the next upside targets will be the early October highs at $4,230 and the mid-September highs at $4,400. In a downturn, the first support will be at the intersection of the broken trendline, the $4,050 level, Friday's lows at $4,030, and the psychological $4,000 level. A bearish response below this level would invalidate the bullish bias and put the November 3 low at $3,900 and the Channel bottom, now at $3,825, under pressure.
