FX.co ★ XAU/USD, GOLD

XAU/USD As traders await the US non-farm payrolls report for new information on the Federal Reserve's monetary policy direction, gold held steady on Friday. Declining oil prices and a weaker US dollar support gold, but Middle East tensions keep markets cautious. Technically, while momentum is still moderate, XAU/USD tests the 20-day SMA Bollinger mid-band. As traders avoid making bold directional bets ahead of the US employment statistics while closely monitoring Middle Eastern geopolitical developments, gold (XAU/USD) remains steady on Friday but lacks positive momentum. As of this writing, XAU/USD is trading at about $4,722, just below Thursday's two-week high of $4,764. With support from a declining US dollar (USD) and declining oil prices amid cautious confidence that the US and Iran could strike a deal to end the war, the metal is still on course for its first weekly gain in three weeks. However, after both sides allegedly fired gunfire close to the Strait of Hormuz, tensions erupted once more on Thursday. US President Donald Trump minimised the most recent escalation despite the escalating confrontations. "The cease-fire is in effect. It's operational," Trump said to ABC News. While Washington waits for Iran's reaction to the most recent US proposal, Trump responds with new threats against Tehran. Trump stated on his Truth Social platform, "If they don't get their deal signed FAST, we'll knock them out a lot harder and a lot more violently in the future." Although oil prices have decreased from recent highs, they are still high due to continuous supply disruptions across the Strait of Hormuz, a vital shipping route that transports around 20% of the world's oil flows.