Gold plunged to a two-month low below $4,400 per ounce during Asian trading Thursday, extending its losing streak to three consecutive sessions amid escalating tensions with Iran. The XAU/USD pair breached critical technical support at the $4,400 level as selling pressure intensified across precious metals markets. The breakdown comes as geopolitical developments surrounding Iran create fresh volatility, though paradoxically driving investors away from the traditional safe-haven asset. Traders and institutional investors are closely monitoring whether gold can reclaim this key support level, now turned resistance, or if further downside momentum will accelerate. The two-month low marks a significant technical failure for the yellow metal, potentially signaling a shift in market sentiment despite ongoing geopolitical uncertainty. Brokers report increased volatility in gold derivatives and spot markets as position adjustments accelerate.
FXnCO Insight
Watch for potential capitulation selling if gold fails to recover $4,400 by end of week, with next support zone at $4,300 becoming the critical line for momentum traders.
Source: FXStreet