On Thursday, May 28, international gold prices experienced a sharp decline, hitting a low of $4,366 per ounce and marking a nearly two-month trough. However, in a dramatic reversal on the same day, prices rebounded strongly to the $4,480 zone, recording an intraday gain of approximately 2.6% and catching many short-sellers off guard. As trading continued into the Asian and European sessions on May 29, gold prices consolidated within a range of $4,400 to $4,460, with bullish sentiment gradually recovering.

The market reacted to news that the U.S. and Iran are nearing an agreement to extend a ceasefire. Concurrently, the U.S. dollar and oil prices weakened, and the latest U.S. PCE inflation data met expectations, collectively driving safe-haven flows back into the gold market. Sources familiar with the matter indicated that the U.S. and Iran have reached a memorandum of understanding (MOU) to extend the ceasefire by 60 days, though final approval from U.S. President Donald Trump is still required.

From a daily chart perspective, gold prices remain below a key resistance trendline originating near the March highs, which has acted as a consistent cap over the past nine trading sessions, suggesting sellers currently maintain control. The Relative Strength Index (RSI) is currently signaling bearish momentum. On the 4-hour chart, two consecutive bullish candlesticks have emerged, reversing the prior weak structure. The Moving Average (MA) indicators show a bullish crossover, and the MACD has formed a small bullish crossover, although its fast and slow lines continue to operate below the zero line, indicating no immediate signs of a shift to a bullish trend. Overall, the recommended trading approach for gold today is to treat the market as being in a wide-ranging consolidation phase.

Gold Trading Strategy: Strategy: Consider short positions near the $4,518-$4,520 resistance zone, with a stop-loss set above $4,542, targeting levels around $4,478 and $4,460.