Gold stabilized on Tuesday after managing to hold above the lower line of the bearish channel. The yellow metal is currently trading near the daily pivot point at $4441, if it breaks below this level, the decline could extend toward support levels at $4269 then $4181. On the upside, if the price rises above the aforesaid pivot point, it may test resistance levels of $4556 then $4644.

Gold prices stabilized on Tuesday but remained under downward pressure, weighed down by the strength of the U.S. dollar and fading hopes of an interest rate cut by the Federal Reserve in the near term.

Market Watch

Dollar holds ground despite reduced war outlook

The dollar stabilized on Tuesday despite U.S. President Donald Trump’s decision to postpone an attack on Iran’s power grid, a move that eased fears of a prolonged war in the Middle East.

Trump wrote on his Truth Social platform that the U.S. and Iran had held “very good and productive” conversations about a “complete and total resolution of hostilities in ​the Middle East”. Iran denied it had engaged in any direct negotiations.

Iran denies talks with US

Iran denied that it had engaged in negotiations with the United States, after President Donald Trump postponed a threat to bomb Iran’s power grid because of what he described as productive talks with unidentified Iranian officials. As a result, he said, he was postponing for five days a plan to hit Iran’s energy grid.

A European official said that ​while there had been no direct negotiations between the two nations, Egypt, Pakistan and Gulf states were relaying messages. A Pakistani official and a second source told Reuters that direct talks on ending the war ‌could take place as early as this week.

Brent prices remain near $100 a barrel

Brent crude prices surged on Tuesday on ​supply fear, as Iran denied it had talks with the United States to end the war in the ‌Gulf, contradicting U.S. President Donald Trump who said a deal could be reached soon.

The uptick follows a sharp sell-off on Monday, with Brent crude falling about 11% to around $99 per barrel after topping $112 on Friday.

Looking Ahead

Markets are awaiting U.S. services and manufacturing PMI for March at 13:45 GMT. If the data exceeds expectations, it could negatively impact gold prices.