FxAnalysis

Directional bias: Neutral to bullish above the 200-day SMA, although repeated difficulty clearing 0.7000 leaves the pair exposed to another rejection.

Gold is building on its recovery from near the $4,020 region in Wednesday’s Asian trades, advancing beyond the $4,100 round level.

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

The US Dollar (USD) is under mild selling pressure on Tuesday, pressured by headlines indicating that a deal to reopen the Strait of Hormuz could be reached as soon as Wednesday.

Gold is attempting a tepid bounce around $4,050 in Asian trading on Tuesday, stalling a two-day decline amid looming US-Iran risks, as markets brace for a slew of US jobs reports due later this week. US JOLTS Job Openings Survey is in focus on Tuesday.

Spot Gold trades in the $4,030 price zone, little changed from Friday’s close, yet down on Monday after starting the week with a bullish gap. The US Dollar (USD) eased throughout the first half of the day, as easing Middle East tensions caused Oil prices to fall.