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Gold prices (XAU/USD) declined on Monday, reversing Friday's gains and retreating to the $4,500 level after failing to break through the $4,590 resistance. The move follows a rejection at key technical levels, with traders closely monitoring whether the $4,500 support will hold. Geopolitical tensions in Iran, particularly near the Strait of Hormuz, have fueled safe-haven demand for gold, but recent weakness suggests short-term profit-taking after a recent rally.
The decline impacts commodity markets and investors seeking refuge in gold during uncertain times. Traders are analyzing whether the $4,500 level will act as a psychological floor or trigger further selling pressure. Broader market implications include potential spillovers into other safe-haven assets like U.S. Treasuries and the Japanese yen. Central bank policies and U.S. dollar strength will also influence gold's trajectory.
For Gulf investors, the situation highlights the interplay between geopolitical risks and commodity prices. Key watchpoints include Iran's nuclear negotiations, OPEC+ supply decisions, and Federal Reserve rate policy. Technical indicators suggest a possible test of $4,400 if the $4,500 level breaks, while a rebound above $4,600 could signal renewed bullish momentum.
