Gold prices remained stable during Monday’s trading, as they continue to await further positive momentum to regain their upward trend in the near term.
Gold is currently trading below the weekly pivot point at $4733. It should be noted that a break above this level could help prices regain their primary bullish trend, heading toward resistance levels at $4809 then $4909.
If gold fails to hold above the weekly pivot point at $4733, it may test the first weekly support level at $4634. A break below this level would be a negative signal that could intensify selling pressure, opening the door for prices to decline toward the second support level at $4558.
In terms of geopolitical escalation, over the weekend, Donald Trump canceled plans to send U.S. negotiators to Pakistan for new talks after Abbas Araghchi made only a brief visit to Islamabad. Trump said he would wait for Tehran to initiate contact, emphasizing that Washington holds the upper hand in the negotiations.
Capturing investor attention on Monday was an Axios report indicating that Iran has put forward a fresh proposal to the United States to reopen the Strait of Hormuz and bring the conflict to an end, while postponing negotiations over Tehran’s nuclear program to a later stage.
While this development briefly eased the surge in oil prices, crude still trades well above pre-war levels, largely due to the ongoing closure of the strait. This narrow passage off Iran’s southern coast is a critical route for about one-fifth of global oil supply, prompting warnings from experts that a prolonged disruption could have severe repercussions for the global economy.
From a fundamental perspective, investors will also have to make room in their calendars for a string of central bank interest rate decisions that could provide more color on how policymakers expect major economies to perform as the fallout from the Iran war intensifies.
Headlining the schedule will be the Federal Reserve, which is largely anticipated to leave borrowing costs on hold at the conclusion of its latest two-day gathering on Wednesday.
Expectations that the Fed will roll out imminent rate cuts have been tempered since the outbreak of the Iran war in late February, which was accompanied by an energy shock that has, in turn, threatened to fuel inflationary pressures in countries around the world.
As for the press conference, this meeting may mark Jerome Powell’s last press conference and meeting as Fed chair. Kevin Warsh, a former Fed governor who is President Trump’s nominee to succeed Powell, faced a Senate Banking Committee confirmation hearing on April 21. If confirmed, he would take over when Powell’s term ends next month.
As the markets await, one of the more notable indicators will be the first reading of U.S. economic growth in the January to March period. The world’s largest economy is projected to have expanded by 2.2% in the first quarter, up from 0.5% in final three months of 2025.
Finally, a look at March’s personal consumption expenditures price index, one of the Fed’s preferred inflation metrics, is also due out.