XAU/USD keeps looking for direction above $4,500

Gold (XAU/USD) trades lower for the second consecutive day on Friday, but remains contained within previous ranges, with downside attempts limited above the $4,500 line for now. Market volatility remains subdued on Friday, with traders awaiting developments from the US-Iran war to make investment decisions.

The confusing situation in the Middle East is providing moderate support to the safe-haven US Dollar, keeping the US Dollar Index (DXY) steady near six-week highs and Gold bulls in check.

The latest news reports that Tehran is reviewing a peace proposal submitted by the US, with both parties far apart on Iran’s nuclear activities and control of the Strait of Hormuz. US Secretary of State Marco Rubio, however, said on Thursday that there was “some progress” in the talks with Tehran, which is feeding a moderate optimism

XAU/USD trades at $4,522, holding a capped tone, with price action nearing the tip of a small triangle pattern. The Relative Strength Index (RSI) hovers around 45, hinting at consolidative, yet slightly negative momentum, while the Moving Average Convergence Divergence (MACD) stays in positive territory but has started to ease, suggesting that recent upside attempts are losing traction