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Gold prices are hitting fresh weekly lows near $4,175 during Friday's Asian session as sellers maintain control, aiming for a third consecutive weekly decline. Despite a U.S.-Iran peace deal, which typically reduces geopolitical risks and should support safe-haven assets like gold, the market remains bearish. Technical indicators show weakening momentum, with key support levels being tested. Traders are closely monitoring whether the $4,150 level will hold or if further declines are imminent.
This bearish trend impacts traders holding long positions in gold, as the sustained sell-off increases the risk of stop-loss orders being triggered. Short-term traders may find opportunities in shorting the metal, but volatility remains a concern. Broader market sentiment, influenced by U.S. monetary policy and inflation expectations, will also play a role in gold's near-term direction.
For Gulf investors, the lack of immediate bullish catalysts suggests caution in gold allocations. The U.S.-Iran deal's limited market impact highlights the dominance of macroeconomic factors over geopolitical news. Key watchpoints include the Federal Reserve's policy signals and the U.S. dollar's strength, which inversely affects gold prices.
