Gold prices opened the week under pressure, trading near $4,500 after retreating from a two-week high of $4,595 reached Friday. The precious metal faces headwinds as stalled negotiations over a US-Iran ceasefire extension and renewed Middle East military strikes are dampening buyer enthusiasm despite ongoing geopolitical tensions that typically support safe-haven demand.
The stronger US dollar is adding additional pressure on gold, which becomes more expensive for holders of other currencies when the greenback rallies. Traders are exercising caution as the geopolitical situation remains fluid, with the lack of diplomatic progress suggesting prolonged uncertainty in the region.
Gold’s inability to hold near its recent highs signals weakening momentum, even as underlying risk factors persist. Market participants are closely monitoring developments in ceasefire talks and any escalation in Middle East hostilities that could trigger renewed safe-haven flows.
FXnCO Insight
Traders should watch for breakdown below $4,480 support which could accelerate selling toward $4,450, while any diplomatic breakthrough could quickly reverse current bearish momentum.
Source: FXStreet