FUNDAMENTAL OVERVIEW Gold erased its weekly losses after Trump said on Truth Social yesterday that the US was having productive discussions with Tehran and would not attack Iran before the midterm elections.Markets reacted immediately, unwinding the escalation premium that had accumulated following earlier reports that Trump was weighing military strikes against Iran ahead of the midterms. Oil prices, real yields and the US dollar all fell after Trump's post, triggering a rally in gold.Looking ahead, Iranian Foreign Minister Araghchi said yesterday that Tehran was reviewing Washington's response to Iran's proposal and expected to reply within the next few days. A positive outcome could shift the outlook for gold from neutral to bullish, as easing geopolitical tensions would likely put further downward pressure on oil prices, inflation expectations and rate hike concerns. A negative response, however, wouldn’t change much but it could limit gold's upside.Next week, the focus will also turn to the US CPI report. A hotter than expected reading could trigger a hawkish repricing of Fed rate expectations, putting renewed pressure on gold. Conversely, a soft report would likely ease rate hike concerns and provide another boost to the precious metal. GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that gold(CFD contract) rallied into the downward trendline and probed above it after Trump dismissed the intention of attacking Iran before the midterms. The sellers will likely step in around these levels with a defined risk above the trendline, to position for a drop into the 3,885 level. The buyers, on the other hand, will continue to pile in above the trendline, with a defined risk below it, to keep targeting the 4,700 level next.GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see the price is trading above the trendline at the moment, but we still have a strong resistance around the 4,228 level. The sellers will likely continue to step in around these levels, with a defined risk above the resistance, to position for a drop into the 3,885 level. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into the 4,700 level next, with the 4,400 level as the first target. GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we now have an upward trendline defining the current bullish momentum. If we get a pullback, we can expect the buyers to lean on the trendline, with a defined risk below it, to keep pushing into new highs. The sellers, on the other hand, will look for a break lower to increase the bearish bets into new lows. The red lines define the average daily range for today.UPCOMING CATALYSTSToday we conclude the week with the University of Michigan Consumer Sentiment survey. This article was written by Giuseppe Dellamotta at investinglive.com.