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Spot Gold (XAU/USD) faced downward pressure on Monday as the US Dollar gained strength amid global risk aversion driven by geopolitical tensions and concerns over central bank policies. Traders observed increased USD demand, pushing the dollar index above 104.50, which pressured gold prices to test critical support near $5,000. Technical indicators suggest a bearish bias for the near term, with key resistance at $5,150 and support at $4,950. The USD's strength impacts gold as investors prioritize safe-haven assets over commodities. A sustained break below $5,000 could trigger further losses, while a rebound above $5,150 might attract buyers. Central bank gold purchases and inflation data will be critical in determining the asset's trajectory. For Gulf investors, the current volatility highlights the need for hedging strategies. Monitoring the Fed's policy stance and OPEC+ decisions will be crucial. The 50-day moving average at $5,020 could serve as a dynamic support level to watch in the coming weeks.
