Gold plunged nearly two percent on Thursday, sliding below the four-thousand-fifty-dollar mark after hitting a two-day high above four-thousand-one-hundred dollars earlier in the session. The sharp selloff came as the US Dollar mounted a strong comeback, fueled by mounting speculation that the White House intends to escalate its campaign against Iran, potentially extending the Gulf War conflict. The precious metal’s retreat signals a shift in safe-haven flows back toward the greenback as geopolitical uncertainty takes a new turn.
Traders and brokers should note this marks a significant reversal for gold, which had been benefiting from war-premium buying in recent sessions. The XAU/USD pair now faces technical pressure with sellers eyeing the psychological four-thousand-dollar level as the next downside target. Currency markets are repricing dollar strength while precious metals positions face unwinding pressure.
FXnCO Insight
Monitor US Dollar momentum closely as any further escalation rhetoric could trigger additional gold liquidation, particularly if stop-losses cluster near the four-thousand-dollar support zone.
Source: FXStreet