According to him, investors will closely track progress in negotiations between Washington and Tehran. With the ceasefire and talks reportedly extended by another 60 days, any breakthrough could further reduce safe-haven demand, potentially putting additional pressure on both gold and oil prices.
Mer noted that bullion has remained under pressure in recent weeks as crude oil prices corrected sharply and investors reduced their demand for traditional safe-haven assets amid signs of progress in US-Iran negotiations.
He added that representatives from both countries have acknowledged the existence of a preliminary framework for a potential agreement, although the proposal still requires approval from US President Donald Trump.
Mer said investors will begin the week by tracking manufacturing and services PMI data from major economies, while attention later in the week will shift to European GDP figures, US non-farm payrolls data and employment-related indicators.
