Gold drifted lower on growing optimism for Russia-Ukraine peace deal

Gold prices remained under modest selling pressure in Tuesday's trading session. A wave of trade optimism and renewed hopes for a Russia-Ukraine ceasefire are helping sustain a positive risk sentiment. US President Donald Trump stated on Monday that Ukraine and Russia would immediately begin negotiations on a ceasefire following a phone call with Russian President Vladimir Putin though he noted the talks may proceed without direct US involvement.
At the same time, the US Dollar struggles to gain traction, amid growing expectations that the Federal Reserve will continue to cut interest rates further into 2025. This dovish outlook for monetary policy could help limit downside potential for the non-yielding yellow metal.
XAU/USD TECHNICAL OVERVIEW
Technical Structure: Gold continues to exhibit signs of indecision, as reflected by a Spinning Top candlestick formation on the daily chart. The price remains below the 20-day Simple Moving Average, indicating ongoing bearish pressure in the broader timeframe. On the 4-hour chart, gold is facing strong rejection near the 200-period SMA, reinforcing the presence of firm overhead resistance. Meanwhile, the 1-hour chart shows consolidation, suggesting a momentum build-up.
Intraday Trend/ Intraday Strategy: The intraday bias remains Neutral and favours the strategy of Buying on Supports and Selling near Resistance level.
Weekly Trend: Downtrend
Major Support: 3204, 3166, 3120
Major Resistance: 3243, 3252, 3281
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