Market analysts are keeping a close eye on gold prices as the Republican party continues negotiations. Recently, House Speaker Johnson revealed that partners reached an agreement on a $40,000 cap for state and local tax deductions, including compromises that may impact economic stability.

This backdrop raises questions about the potential influence on gold, particularly as XAU/USD trades near critical support levels. Investors are cautious yet hopeful that gold will hold firm, given its appeal as a safe-haven asset in times of uncertainty.