Gold remains under bearish pressure but finds support above $3,340 amid geopolitical uncertainty

Gold (XAU/USD) is trading lower on Friday, as easing fears of a broader Middle East conflict have reduced demand for safe-haven assets. The metal has extended its decline from weekly highs near $3,450 and is heading for a 2.75% weekly loss — its steepest in six weeks.

Market tensions subsided after U.S. President Donald Trump signaled a two-week timeline to decide on possible military action against Iran, calming fears of an imminent escalation.

Additionally, reports of ongoing diplomatic talks between European officials and Iranian delegates have raised hopes for a peaceful resolution, sparking a risk-on rally that continues to weigh on gold prices. 

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold is exhibiting mixed signals across timeframes, reflecting short-term weakness within a broader consolidation phase. On the daily chart, a Doji candlestick pattern near the 20-day SMA suggests indecision, with prices holding just above this key moving average. The 4-hour chart shows a consolidation phase, indicating a lack of clear directional momentum in the medium term. However, the 1-hour timeframe reveals a bearish flag formation, hinting at potential downside continuation if support levels break.

Intraday Trend: The intraday bias remains bearish to neutral and favours the strategy of Selling on Support Breakdown and Selling on Resistance.

Weekly Trend: Neutral

Major Support: 3340, 3322, 3292

Major Resistance: 3365, 3385, 3402