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Gold prices are experiencing a significant selloff as rising oil prices stoke inflation concerns and weaken investor sentiment toward a potential US-Iran deal. Technical analysis reveals a breakdown below key moving averages (100-MA and 200-MA) on the H4 chart, signaling accelerating bearish momentum. The primary downside target for sellers is the $4601 support level, with further declines likely if this level fails.
This development is critical for commodity traders and forex markets, as gold often moves inversely to the US dollar. The correlation with oil prices adds complexity, as higher energy costs can drive inflation, prompting central banks to adopt tighter monetary policies. Traders should monitor the $4601 level closely, as a break below it could trigger a broader selloff in precious metals.
For Gulf investors, the interplay between oil and gold is particularly relevant. As oil prices rise, Gulf economies may see mixed signals—benefiting from higher energy revenues but facing inflationary pressures that could weigh on gold demand. Key indicators to watch include OPEC+ policy updates and US Federal Reserve statements, which could influence both oil and gold trajectories.
