Gold retreated from the $4,700 psychological barrier during North American trading hours, slipping 0.2% to $4,641 as de-escalation hopes surrounding the Strait of Hormuz conflict dampened safe-haven demand. Buyers attempted to push prices beyond the key level but failed to sustain momentum, triggering a pullback that accelerated below critical psychological support.
The move comes as rising optimism over a potential resolution to US-Iran tensions reduced investor appetite for defensive assets. Mixed economic data from the United States added to the uncertain backdrop but failed to provide enough support to keep gold elevated. The yellow metal had been riding a strong rally fueled by geopolitical tensions in the critical shipping chokepoint.
Traders and brokers should watch for further downside if diplomatic progress continues, potentially targeting lower support zones. Conversely, any breakdown in negotiations could quickly reverse the current selling pressure.
FXnCO Insight
Gold’s failure at $4,700 signals profit-taking on peace hopes; monitor Hormuz developments closely as renewed tensions could rapidly restore safe-haven flows.
Source: FXStreet